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Nic Schaub
Former Member
Title
Prof. Dr.
Last Name
Schaub
First name
Nic
Phone
+41 71 224 7031
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1 - 8 of 8
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PublicationDo Individual Investors Trade on Investment-related Internet Postings?Many people share investment ideas online. This study investigates whether individual investors trade on investment-related Internet postings. We use unique data from a social trading platform that allow us to observe the shared portfolios of traders, their posted comments, and the replicating transactions of followers. We find robust evidence that followers increasingly replicate shared portfolios of traders after the posting of comments. However, postings do not help followers identify portfolios that deliver superior performance in the future. In a cross-sectional analysis, we show that it is mainly followers who are typically considered to be unsophisticated who trade after comment postings.Type: journal articleJournal: Management ScienceIssue: online first
Scopus© Citations 23 -
PublicationType: journal articleJournal: Review of Financial StudiesVolume: 31Issue: 11DOI: 10.1093/rfs/hhy046
Scopus© Citations 30 -
PublicationThe Role of Data Providers as Information IntermediariesThis study investigates whether financial data providers serve as information intermediaries in capital markets. To this end, I examine whether the timeliness of earnings information disseminated by First Call (Thomson Reuters) affects the market's reaction to earnings announcements. I document that the immediate price and volume response is weaker and the post-earnings announcement drift stronger for earnings news disseminated with a delay by First Call. To mitigate endogeneity concerns, I study the market reaction on the day of the delayed dissemination and show that a significant part of the stronger drift is clustered around this day.Type: journal articleJournal: Journal of Financial and Quantitative AnalysisVolume: 53Issue: 4
Scopus© Citations 8 -
PublicationThe Impact of Financial Advice on Trade Performance and Behavioral BiasesWe use a dataset from a large retail bank to examine the impact of financial advice on investors’ stock trading performance and behavioral biases. Our data allow us to classify each individual trade as either advised or independent and to compare them in a trade-bytrade within-person analysis. Thus, our study is not plagued by the endogeneity problems typically faced by studies on financial advice. We document that advisors hurt trading performance. However, they help to reduce some of the behavioral biases retail Investors are subject to, but this does not overcompensate the negative performance effects of the bad stock recommendations.
Scopus© Citations 36 -
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PublicationFinancial Advice and Retirement Savings
;Hoechle, Daniel ;Ruenzi, StefanType: conference paper -
PublicationType: conference speech
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PublicationInflation and Individual Investors' Behavior: Evidence from the German Hyperinflation( 2021-03-15)
;Braggion, FabioThis paper analyzes how individual investors respond to inflation. We introduce a unique dataset containing information on local inflation and security portfolios of more than 2,000 clients of a German bank between 1920 and 1924, covering the hyperinflation. We find that individual investors buy less (sell more) stocks when facing higher local inflation. This effect is more pronounced for less sophisticated investors. We also document a positive relation between local inflation and forgone returns following stock sales. Our findings are consistent with individual investors suffering from money illusion. Alternative explanations such as consumption needs are unlikely to drive our results.Type: working paperVolume: 2021Issue: 07