Social Interaction at Work: Common Stock Investments∗
نویسندگان
چکیده
Stock market investment decisions of individual investors are positively correlated with stock market investment decisions of their co-workers. This holds even after accounting for plant, zip code, and stock fixed effects. Sorting of unobservably similar individuals to the same workplaces is unlikely to explain our results, as evidenced by the investment behavior of individuals that move between plants. We do not find that purchases made under stronger co-worker purchase activity is associated with higher investment returns. Moreover, social interaction appears to drive the purchase of within-industry stocks; an investment mistake. Overall, our results suggest a strong influence of co-workers on investment choices, but not an influence that improves the quality of investment decisions.
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