COVID-19 and investor behavior()

How do retail investors respond to the outbreak of COVID-19? We use transaction-level trading data to show that investors significantly increase their trading activities as the COVID-19 pandemic unfolds, both at the extensive and at the intensive margin. Investors, on average, increase their brokera...

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Detalles Bibliográficos
Autores principales: Ortmann, Regina, Pelster, Matthias, Wengerek, Sascha Tobias
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier Inc. 2020
Materias:
Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7414361/
https://www.ncbi.nlm.nih.gov/pubmed/32837386
http://dx.doi.org/10.1016/j.frl.2020.101717
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author Ortmann, Regina
Pelster, Matthias
Wengerek, Sascha Tobias
author_facet Ortmann, Regina
Pelster, Matthias
Wengerek, Sascha Tobias
author_sort Ortmann, Regina
collection PubMed
description How do retail investors respond to the outbreak of COVID-19? We use transaction-level trading data to show that investors significantly increase their trading activities as the COVID-19 pandemic unfolds, both at the extensive and at the intensive margin. Investors, on average, increase their brokerage deposits and open more new accounts. The average weekly trading intensity increases by 13.9% as the number of COVID-19 cases doubles. The increase in trading is especially pronounced for male and older investors, and affects stock and index trading. Following the 9.99%-drop of the Dow Jones on March 12, investors significantly reduce the usage of leverage.
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spelling pubmed-74143612020-08-10 COVID-19 and investor behavior() Ortmann, Regina Pelster, Matthias Wengerek, Sascha Tobias Financ Res Lett Article How do retail investors respond to the outbreak of COVID-19? We use transaction-level trading data to show that investors significantly increase their trading activities as the COVID-19 pandemic unfolds, both at the extensive and at the intensive margin. Investors, on average, increase their brokerage deposits and open more new accounts. The average weekly trading intensity increases by 13.9% as the number of COVID-19 cases doubles. The increase in trading is especially pronounced for male and older investors, and affects stock and index trading. Following the 9.99%-drop of the Dow Jones on March 12, investors significantly reduce the usage of leverage. Elsevier Inc. 2020-11 2020-08-08 /pmc/articles/PMC7414361/ /pubmed/32837386 http://dx.doi.org/10.1016/j.frl.2020.101717 Text en © 2020 Elsevier Inc. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Ortmann, Regina
Pelster, Matthias
Wengerek, Sascha Tobias
COVID-19 and investor behavior()
title COVID-19 and investor behavior()
title_full COVID-19 and investor behavior()
title_fullStr COVID-19 and investor behavior()
title_full_unstemmed COVID-19 and investor behavior()
title_short COVID-19 and investor behavior()
title_sort covid-19 and investor behavior()
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7414361/
https://www.ncbi.nlm.nih.gov/pubmed/32837386
http://dx.doi.org/10.1016/j.frl.2020.101717
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