The starting point of this paper is that neighboring investors may talk to each other sharing information about their transactions in stock markets, leading to similar trading behavior. We find that pairwise trade timing similarities between investor pairs are negatively associated to...

We introduce a novel method to identify information networks in stock markets, which explicitly accounts for the impact of public information on investor trading decisions. We show that public information has a clear effect on the empirical investor networks' topology. Most importantly, our...

According to information theory, central agents are better informed. Thus to gain higher returns, investors are motivated to seek connections. At the same time, previous studies provide evidence on homophily in social networks: individuals tend to establish relationships with the alike to...

We find that investors' future trading decisions are driven by the patterns of their social neighborhood and the trading activity therein. Moreover, we provide evidence that investors weigh their social connections differently in terms of information transfer. Methodologically, we tackle the...

Recent studies using data on social media and stock markets have mainly focused on predicting stock returns. Instead of predicting stock price movements, we examine the relation between Facebook data and investors' decision making in stock markets with a unique data on investors' transactions on...

Investors in stock markets distribute their limited attention across different securities. Drawing on recent findings on social behavior, we ask whether there are persistent, characteristic patterns in how household investors distribute their attention. Our study builds on a large data set that...

In this paper, we ask whether the structure of investor networks, which are estimated using shareholder registration data, is abnormal during financial crises. We answer this question by analyzing the structure of investor networks through 10 prominent features. The networks are estimated from...

Investors in stock markets face a huge amount of financial information. For that reason, they must decide how to distribute their trading effort across different securities. We propose a new measure of investor trade allocation between securities, called the trading signature . This measure,...