← Search

Financial Attention

Nachum Sicherman1; George Loewenstein2; Duane J. Seppi2; Stephen P. Utkus3

1 Columbia University · 2 Carnegie Mellon University · 3 Vanguard University

Review of Financial Studies 2016 open access

This paper investigates financial attention using novel panel data on daily investor online account logins. We find support for selective attention to portfolio information. Account logins fall by 9.5% after market declines. Investors also pay less attention when the VIX volatility index is high. The level of attention and the attention/return correlation are strongly related to investor demographics (gender, age) and financial position (wealth, holdings). Using a new statistical decomposition, we show how aggregate and individual household trading are related to investor attention. Received October 31, 2014; accepted July 29, 2015 by Editor David Hirshleifer.

DOI
10.1093/rfs/hhv073
Volume
29 (4)
Pages
863-897
Language
en
Export
BibTeX
Sources
openalex openalex crossref