Individuals’ Financial Risk-Taking and Peer Influence

• Individual investor’s financial risk-taking is linked to the behavior among peers within ones community. By use of data at the individual level, including detailed information about financial holdings, wealth and a host of socioeconomic and demographic characteristics, it is found that risk-taking among peers affect individuals choice of portfolio risk. The results hold for the full sample of individuals concerning their choice of overall proportion of risky assets, as well as for stock market participants’ choice of total- and systematic stock portfolio risk. Overall, the results stress that interaction with peers’ is an important channel through which individuals’ risk-taking is affected.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

Nyckelord

Individual investors

Social interaction

Portfolio choice

Stock market

Publikations- och innehållstyp

vet (ämneskategori)

ovr (ämneskategori)