 Googlization and retail trading activityChristophe Desagre and D’Hondt, Catherine Journal of Behavioral and Experimental Finance, 2021, vol. 29, issue C Abstract: A large body of literature documents a positive relationship between the Google Search Volume Index (SVI) and market returns or volumes. Such findings are consistent with a buying pressure due to increased attention. Unlike most of the studies that use market data, we use the trading accounts for a sample of retail investors. The advantage is twofold; we are able to disentangle purchases from sales, and our results are not biased by any institutional trading. We find that the relationship between the SVI and retail trading activity is positive but not stronger for purchases than for sales. We also demonstrate evidence of a bidirectional causality between attention and trading activity, though contemporaneous effects predominate. Our results are robust to controls based on sociodemographics or subjective investor characteristics, as well as various specifications of the SVI and different measures of trading activity. Keywords: Investor attention; Google SVI; Retail investors (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:29:y:2021:i:c:s2214635020303828 DOI: 10.1016/j.jbef.2020.100453 Access Statistics for this article Journal of Behavioral and Experimental Finance is currently edited by Michael Dowling and Jürgen Huber More articles in Journal of Behavioral and Experimental Finance from Elsevier |
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