Income, Trading, and Performance: Evidence from Retail Investors
Dien Giau Bui, Chih-Yung Lin, Iftekhar Hasan, Rui-Xiang Zhai
Journal of Empirical Finance,
We examine whether household income influences the trading styles of retail investors and their investment performance. To investigate this question, we use a unique dataset of branch-level trading that contains all retail investors and observe that those investors with high income trade more and earn significantly higher returns in the stock market. In addition, this income effect becomes stronger for highly risky stocks, such as gambling or lottery-like stocks. These findings are in line with the information model theorized by Peress (2004) in which wealthy investors take extra risks by trading more stocks.
Info Graphs Sometimes pictures say more than a thousand words. Therefore, we selected...
Centre for Evidence-based Policy Advice
Centre for Evidence-based Policy Advice (IWH-CEP) ...
Floor Plans Floor Plans with Room Accupancy Information: Main Building Kleine Märkerstraße 8 Leipziger Straße 100
Hygiene Concept ceased but Home Office rules unchanged
IWH Hygiene Concept ceased to have effect – Home Office rules remain unchanged from Tankred Schuhmann, May 28, 2022 Dear all, On May 25, various mandatory legal...
IWH Retreat Kick-off
IWH Retreat: Kick-off Meeting from Oliver Holtemöller, April 19, 2022 Dear all, On 08 and 09 June 2022, our retreat at Schwielowsee near Potsdam will take place. ...
Core office days and hygiene concept
Core office days and hygiene concept from Reint Gropp, November 22, 2022 IWH Hygiene Concept, as of Nov 1, 2022 (PDF, 110 kB) Dear colleagues, In the...
Facility Management and Emergency Assistance First-aiders and Fire Prevention Aides Behavior in Case of Fire Escape Plan List of Accident Insurance...
Library General Information (Leaflet) ...
Payroll and VBL
Payroll and VBL Payroll The monthly earnings statement for IWH employees is made available online via the LuGIS portal . You will receive two letters with the access...