Impact of information spread and investment behavior on the diffusion of internet investment products

Narisa Zhao, Xiaokang Cheng and Xianda Guo

Physica A: Statistical Mechanics and its Applications, 2018, vol. 512, issue C, 427-436

Abstract: Social networks play an important role in financial markets because the information diffusion in social networks influences the participation of investors. Prior studies have investigated the impact of investor social networks, but few have explored the impact of investment behavior based on information spread in social networks. In this paper, we propose a model for studying the influence that information dissemination and investment behavior in social networks have on the adoption of internet investment products. Information spread process, temporary investment, regular investment and divestment are considered. The results show that the positive influence of regular investment and the negative impact of divestment are not sensitive to the time scale. In addition, the positive impact of regular investment rate is obvious only when the temporary investment rate is not too small, and vice versa. Furthermore, the negative influence of divestment and the information rejection can hardly be offset by increasing the regular investment rate.

Keywords: Internet investment product diffusion; Social networks; Information spread; Investment behavior (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:512:y:2018:i:c:p:427-436

DOI: 10.1016/j.physa.2018.08.075

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