The rate of communication

Shiyang Huang; Byoung Hyoun Hwang; Dong Lou

doi:10.1016/j.jfineco.2021.03.013

The rate of communication

Shiyang Huang, Byoung Hyoun Hwang^*, Dong Lou

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

5 Citations (Scopus)

Abstract

We study the transmission of financial news and opinions through social interactions among retail investors in the United States. We identify a series of plausibly exogenous shocks, which cause “treated investors” to trade abnormally. We then trace the “contagion” of abnormal trading activity from the treated investors to their neighbors and their neighbors’ neighbors. Coupled with methodology drawn from epidemiology, our setting allows us to estimate the rate of communication and how it varies with the characteristics of the underlying investor population.

Original language	English
Pages (from-to)	533-550
Number of pages	18
Journal	Journal of Financial Economics
Volume	141
Issue number	2
DOIs	https://doi.org/10.1016/j.jfineco.2021.03.013
Publication status	Published - Aug 2021
Externally published	Yes

Bibliographical note

Publisher Copyright:
© 2021

ASJC Scopus Subject Areas

Accounting
Finance
Economics and Econometrics
Strategy and Management

Keywords

Information diffusion
Investor communication
Social interaction

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10.1016/j.jfineco.2021.03.013

Cite this

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author = "Shiyang Huang and Hwang, {Byoung Hyoun} and Dong Lou",

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AB - We study the transmission of financial news and opinions through social interactions among retail investors in the United States. We identify a series of plausibly exogenous shocks, which cause “treated investors” to trade abnormally. We then trace the “contagion” of abnormal trading activity from the treated investors to their neighbors and their neighbors’ neighbors. Coupled with methodology drawn from epidemiology, our setting allows us to estimate the rate of communication and how it varies with the characteristics of the underlying investor population.

KW - Information diffusion

KW - Investor communication

KW - Social interaction

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JF - Journal of Financial Economics

IS - 2

ER -

The rate of communication

Abstract

Bibliographical note

ASJC Scopus Subject Areas

Keywords

Access to Document

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