Google Search Volume and Individual Investor Trading

Dimitrios Kostopoulos, Steffen Meyer

Publikation: Konferencebidrag uden forlag/tidsskriftPaperForskningpeer review

Resumé

We relate Google search volumes, proxying for economic concerns of households (FEARS), to individual investor trading. The trading data come from a large German brokerage covering more than 100 thousand investors over ten years. When FEARS is high, individual investors are on the sell side of the market, particularly trading out of risky assets. This effect continues over the following days. Additionally, we find FEARS to have a negative short-horizon impact on stock market returns, which reverses over the following six days. This shows that the effect of sentiment on the market is temporary, while on individual investors it is permanent. In subsample analyses, we find results that are consistent with the theoretical prediction that less sophisticated investors are more prone to sentiment.
OriginalsprogEngelsk
Publikationsdatosep. 2018
DOI
StatusUdgivet - sep. 2018
Begivenhed24th Annual Meeting of the German Finance Association (DGF) - Ulm, Tyskland
Varighed: 6. okt. 20177. okt. 2017

Konference

Konference24th Annual Meeting of the German Finance Association (DGF)
LandTyskland
ByUlm
Periode06/10/201707/10/2017

Fingeraftryk

Google
Individual investors
Investors
Sentiment
Assets
Economics
Brokerage
Stock market returns
Household
Prediction

Citer dette

Kostopoulos, D., & Meyer, S. (2018). Google Search Volume and Individual Investor Trading. Afhandling præsenteret på 24th Annual Meeting of the German Finance Association (DGF), Ulm, Tyskland. https://doi.org/10.2139/ssrn.2818939
Kostopoulos, Dimitrios ; Meyer, Steffen. / Google Search Volume and Individual Investor Trading. Afhandling præsenteret på 24th Annual Meeting of the German Finance Association (DGF), Ulm, Tyskland.
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Kostopoulos, D & Meyer, S 2018, 'Google Search Volume and Individual Investor Trading' Paper fremlagt ved 24th Annual Meeting of the German Finance Association (DGF), Ulm, Tyskland, 06/10/2017 - 07/10/2017, . https://doi.org/10.2139/ssrn.2818939

Google Search Volume and Individual Investor Trading. / Kostopoulos, Dimitrios; Meyer, Steffen.

2018. Afhandling præsenteret på 24th Annual Meeting of the German Finance Association (DGF), Ulm, Tyskland.

Publikation: Konferencebidrag uden forlag/tidsskriftPaperForskningpeer review

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Kostopoulos D, Meyer S. Google Search Volume and Individual Investor Trading. 2018. Afhandling præsenteret på 24th Annual Meeting of the German Finance Association (DGF), Ulm, Tyskland. https://doi.org/10.2139/ssrn.2818939