Is It Worth Imitating Other Investors’ Determinants of Effective Investment Strategies Among Students

Michal Mijal () and Katarzyna Niewinska ()
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Michal Mijal: Faculty of Management, University of Warsaw, Poland
Katarzyna Niewinska: Faculty of Management, University of Warsaw, Poland

Research Reports, 2024, vol. 2, issue 41, 141-149

Abstract: Purpose: This study examines the investment strategies of Generation Z, focusing on how they define and implement these strategies. It explores the factors influencing their decisionmaking, such as risk aversion and time horizon, and investigates the impact of social interactions on their investment choices. Design/ methodology/approach: The research involved a total of 626 participants across two academic years (218 in 2022 and 408 in 2023), who developed and executed virtual investment strategies over a seven-week period using GPWtrader, an educational platform by the Warsaw Stock Exchange Foundation. Weekly meetings were held where participants presented their strategies, market observations, and results. After the investment period, a quantitative study was conducted with 314 students from the total sample (106 in 2021/22 and 208 in 2022/23), collecting data on their investment goals, instrument selection, and strategy adaptation methods. Findings: The main finding is that any strategy turned out to bring a better return rate than a strategy that was constantly shifting. Also, different strategies were adopted and many students were imitating the strategies of their peers, suggesting that the social aspect of the investment decision-making process should not be underestimated. Research limitations/implications: The study’s main limitations are its focus on a single, homogeneous group and its sample size, which limited the use of advanced statistical analyses. The authors plan to extend the research to compare the students’ returns with market portfolio returns, analyze correlations between strategies and outcomes, and include other sub-populations of Generation Z. Originality/value: This paper extends the perspective on the investment behaviors of Generation Z, emphasizing the importance of consistency in strategy execution and the influence of social interactions. It makes a significant contribution to understanding generational differences in financial decision-making, offering practical implications for financial education and investment training.

Keywords: Generation Z; capital market; stock exchange games; investment strategies; decision- making (search for similar items in EconPapers)
JEL-codes: G32 M16 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:sgm:resrep:v:2:i:41:y:2024:p:141-149

DOI: 10.7172/1733-9758.2024.41.8

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