TY  - UNPD
A1  - Balakina, Olga
A1  - Bäckman, Claes
A1  - Hackethal, Andreas
A1  - Hanspal, Tobin
A1  - Lammer, Dominique Marcel
T1  - Good peers, good apples? Peer effects in portfolio quality
T2  - SAFE working paper ; No. 353
N2  - Peer effects can lead to better financial outcomes or help propagate financial mistakes across social networks. Using unique data on peer relationships and portfolio composition, we show considerable overlap in investment portfolios when an investor recommends their brokerage to a peer. We argue that this is strong evidence of peer effects and show that peer effects lead to better portfolio quality. Peers become more likely to invest in funds when their recommenders also invest, improving portfolio diversification compared to the average investor and various placebo counterfactuals. Our evidence suggests that social networks can provide good advice in settings where individuals are personally connected.
T3  - SAFE working paper - 353 
KW  - Household finance
KW  - investment decisions
KW  - investment behavior
KW  - peer effects
KW  - social networks
Y1  - 2022
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/64736
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-647368
UR  - https://ssrn.com/abstract=4150243
IS  - July 5, 2022
PB  - SAFE
CY  - Frankfurt am Main
ER  -