【Brownbag】Social Influence in Household Equity Investment: Evidence from Randomized Military Drafts

  • 研討會日期 : 2023-07-21
  • 時間 : 12:10
  • 主講人 : Professor Tim C.C. Hung (洪志清)
  • 地點 : Conference room B110
  • 演講者簡介 : Professor Tim C.C. Hung received his PhD from Baruch College, City University of New York. He is currently an Assistant Professor of Finance at National Taiwan University. His research interests are Asset Pricing, Household Finance, Behavioral Finance, and Social Network.
  • 演講摘要 : We provide plausibly causal evidence of the peer effect on investment in a large-scale natural experiment. We show that retail investors respond to investment decisions of their military peers who were randomly assigned in compulsory military drafts: retail investors participate more in the stock market, invest more in stocks that peers hold, and perform better overall. Our investigation of possible channels favors the explanation that retail investors learn valuable information from their peers to make profitable investment decisions: these effects are more pronounced among peers providing such valuable information, and stocks with more peer clientele outperform stocks with less clientele.
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