Attention Triggers and Investors' Risk Taking
Journal
Journal of Financial Economics
ISSN
0304-405X
Type
journal article
Date Issued
2022-02
Author(s)
Abstract (De)
This paper investigates how individual attention triggers influence financial risk-taking based on a large sample of trading records from a brokerage service that sends standardized push messages on stocks to retail investors. By exploiting the data in a difference-in-differences (DID) setting, we find that attention triggers increase investors' risk-taking. Our DID coefficient implies that attention trades carry, on average, a 19-percentage point higher leverage than non-attention trades. We provide a battery of cross-sectional analyses to identify the groups of investors and stocks for which this effect is stronger.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Volume
143
Number
2
Start page
846
End page
875
Subject(s)
Eprints ID
258614