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Attracting attention from peers: Excitement in social trading

Author

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  • Pelster, Matthias

Abstract

I study the impact of peers showing interest in investors’ trading on the latters’ future trading activities. To this end, I investigate the trading patterns of investors who attract attention of their peers on a social trading platform. My empirical findings suggest that social traders who draw attention of their peers show an increased trading activity and are more willing to take risks. This finding may be explained by investors becoming more excited about trading once they receive attention from their peers.

Suggested Citation

  • Pelster, Matthias, 2019. "Attracting attention from peers: Excitement in social trading," Journal of Economic Behavior & Organization, Elsevier, vol. 161(C), pages 158-179.
  • Handle: RePEc:eee:jeborg:v:161:y:2019:i:c:p:158-179
    DOI: 10.1016/j.jebo.2019.03.010
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Social interaction; Excitement; Emotions; Investor behavior; Trading activity;

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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