Individual investors’ trading behavior in Moscow Exchange and the COVID-19 crisis

Abdulaziz Djalilov and Numan Ülkü

Journal of Behavioral and Experimental Finance, 2021, vol. 31, issue C

Abstract: This article presents the first study of Russian individual investors’ aggregate equity trading behavior using novel data from Moscow Exchange, with a focus on the COVID-19 episode. Aggregate Russian individual bought the dip during the COVID crash in March–April 2020. While this can be accounted for by their regular contrarian trading traits, they remained as net buyers until the market fully recovered, a sign of sophistication in striking contrast to views that characterized individual investors as noise traders. Our analysis suggests that this outcome was driven by a combination of regular contrarian traits and a unique positive shock to individual investor demand for equities, with weaker evidence of exploiting a negative bubble.

Keywords: Individual investor trading behavior; Moscow Stock Exchange; COVID-19; Negative bubbles (search for similar items in EconPapers)
JEL-codes: G11 G41 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:31:y:2021:i:c:s2214635021000939

DOI: 10.1016/j.jbef.2021.100549

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