| Authors |
Huang, Hwang, Lou |
| Journal |
Journal of Financial Economics |
| Year |
2021 |
| Type |
Published Paper |
| Abstract |
We study the transmission of financial news and opinions through social interactions among retail investors in the United States. We identify a series of plausibly exogenous shocks, which cause "treated investors" to trade abnormally. We then trace the "contagion" of abnormal trading activity from the treated investors to their neighbors and their neighbors' neighbors. Coupled with methodology drawn from epidemiology, our setting allows us to estimate the rate of communication and how it varies with the characteristics of the underlying investor population. |
| Keywords |
Social interaction, investor communication, information diffusion |
| URL |
https://www.sciencedirect.com/science/article/abs/pii/S0304405X21001276?via%3Dihub |
| Tags |
Archival Empirical |
Financing- and Investment Decisions (Individual)
|