Attention Triggers and Trading Behavior
SeriesTI Finance Research Seminars
SpeakersMarc Arnold (University of St. Gallen, Switzerland)
LocationTinbergen Institute, room 1.60
Date and time
May 29, 2019
12:45 - 14:00
This paper investigates the impact of attention triggers on individual investors' trading behavior. We analyze a large sample of trading records from a brokerage service that sends push messages on stocks to retail investors. This micro-level data allows us to isolate the push messages as individual stock-attention triggers. We exploit a difference-in-differences setting to investigate the impact of these attention triggers on individual trading. Our analysis highlights how attention affects investors' trading intensity, risk taking, portfolio composition, and performance. We also derive insights on an attention satiation effect.