Arbeitspapier
The Trading Response of Individual Investors to Local Bankruptcies
We use data from a German online brokerage and a survey to show that retail investors sharply reduce risk-taking in response to nearby firm bankruptcies, which are not predictive of returns. The e ects on trading are spatially highly concentrated, immediate and not persistent. They seem to operate through more pessimistic expected returns and increased risk aversion and do not reflect wealth e ects or changes in background risks. Investors learn about bankruptcies through immediate coverage in local newspapers. Our findings suggest that non-informative local experiences that make downside risks of stock investment more salient contribute to idiosyncratic short-term uctuations in trading.
- Sprache
-
Englisch
- Erschienen in
-
Series: CEBI Working Paper Series ; No. 08/20
- Klassifikation
-
Wirtschaft
Household Saving; Personal Finance
Portfolio Choice; Investment Decisions
- Thema
-
Individual investors
risk-taking
trading
experiences
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Laudenbach, Christine
Loos, Benjamin
Pirschl, Jenny
Wohlfart, Johannes
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Copenhagen, Department of Economics, Center for Economic Behavior and Inequality (CEBI)
- (wo)
-
Copenhagen
- (wann)
-
2020
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Laudenbach, Christine
- Loos, Benjamin
- Pirschl, Jenny
- Wohlfart, Johannes
- University of Copenhagen, Department of Economics, Center for Economic Behavior and Inequality (CEBI)
Entstanden
- 2020
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