Losing by learning? A study of social trading platform

Xuejun Jin, Yu Zhu and Ying Sophie Huang

Finance Research Letters, 2019, vol. 28, issue C, 171-179

Abstract: This paper is the first to use a unique dataset extracted from a popular social trading platform in China to investigate whether social learning on average encourages riskier trading and hurt stock portfolio returns. We observe an increasing trading frequency and a preference for high-volatility stocks for signal followers on average in the network over time. Furthermore, we find leading trades perform relatively better than lagging ones, indicating social learning in a social trading network is not positively associated with portfolio performance. Taken together, our empirical results are in support of Han et al. (2018).

Keywords: Social trading; Portfolio management; Risk-taking behavior (search for similar items in EconPapers)
JEL-codes: G11 G41 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:28:y:2019:i:c:p:171-179

DOI: 10.1016/j.frl.2018.04.017

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