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2015 Conference

October 15–16, 2015

Orlando, FL

Welcome to the AFS Conference 2015 Schedule App. Please use the search features to see when your session or poster has been scheduled to take place. 

Social Interaction Effects and Individual Portfolio Choice: Evidence from 401(k) Pension Plan Investors

Thursday, October 15, 2015 at 2:05 PM–3:35 PM EDT
3-Senate
Keywords: 5 words maximum

Portfolio Choice; Peer Effect; 401(k)

Very short description for use in the program to help attendees understand more than a title can describe

401(k) participants are influenced by their coworkers when they make equity investment decisions. They are likely to increase (decrease) their risky share when they have lower (higher) equity exposure than their coworkers in the past period. The effect is especially strong when the difference of equity exposure is substantial. Furthermore, they are likely to increase equity exposure if they earned lower equity returns than their peers in the past period. Interaction of peer behavior and peer outcome influences investment decisions, inducing individuals with substantially lower equity exposure relative to peers increase more of risky share when peers earned higher returns. 

Lead & Corresponding Author

Timothy (Jun) Lu, Peking University HSBC Business School
Job Title

Assistant Professor

Additional Authors

Ning Tang, San Diego State University
Job Title
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