Review of Financial Studies Vol. 29 No. 4 2016

Financial Attention

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

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

Abstract

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.

DOI

10.1093/rfs/hhv073

Volume

29

Issue

4

Pages

863-897

Language

en

Sources

openalex crossref openalex

Cite

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