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Determinants of stock attention and behavioral preferences: Evidence from China's retail investors

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  • Zhang, Yixing
  • Chen, Chen
  • Lu, Xiaomeng

Abstract

Proper measurement of individual attention has been one of the most controversial issues regarding studies on attention-constraint investors. Therefore, the characteristics of attentive investors and their behavior pattern lack sufficient research effort. In this study, we propose a novel and direct method to measure attention using a large and representative survey data of China’s retail investor. We find that levels of attention is attributable to investors’ demographic and psychological variables. We further evaluate the relationship between attention and stock-holding behavior and find significant positive correlation between attention and number of stocks held, average holding period and stock account value, even considering the difference in investors’ current performance status and future expectations. Findings support attention induce buying behavior from individual perspective, and provide data basis for future studies.

Suggested Citation

  • Zhang, Yixing & Chen, Chen & Lu, Xiaomeng, 2025. "Determinants of stock attention and behavioral preferences: Evidence from China's retail investors," Finance Research Letters, Elsevier, vol. 86(PD).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pd:s1544612325018380
    DOI: 10.1016/j.frl.2025.108584
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