Research project Investor attention and market activity
Investor attention is an important determinant of market activity and investor performance.
In this research project, we explore the role of investor attention from several novel perspectives such as investor attention to Federal Reserve communication and investor attention as a determinant of investors’ ability to benefit from the use of leverage.
Project description
In this research project, we conduct several studies to investigate how investor attention explains market activity. The novelty of our research project emanates from analyzing the effects of investor attention by using new and/or unique approaches in measuring investor attention.
In the first paper, the authors use speech recognition to examine what central bank topics drive investor trading activity in real time.
The second paper utilizes a unique dataset to examine how investor portfolio attention can alleviate adverse behavioral effects of leverage use.
In the third paper, the authors analyze the effects of investor attention in FX markets.
Finally, we focus on the recent boom in trading apps, such as RobinHood, and try to understand the motives of this new wave of investors, who are increasingly important in financial markets.
Project members
Project managers
Jarkko Peltomäki
Professor
Members
Michal Dzielinski
Assistant Professor
Ian Khrashchevskyi
Researcher
