Library Header Image
LSE Research Online LSE Library Services

The rate of communication

Huang, Shiyang, Hwang, Byoung-Hyoun and Lou, Dong ORCID: 0000-0002-5623-4338 (2021) The rate of communication. Journal of Financial Economics, 141 (2). 533 - 550. ISSN 0304-405X

[img] Text (The rate of communication) - Accepted Version
Available under License Creative Commons Attribution Non-commercial No Derivatives.

Download (817kB)

Identification Number: 10.1016/j.jfineco.2021.03.013


We study the transmission of financial news and opinions through social interactions among retail investors in the United States. We identify a series of plausibly exogenous shocks, which cause “treated investors” to trade abnormally. We then trace the “contagion” of abnormal trading activity from the treated investors to their neighbors and their neighbors’ neighbors. Coupled with methodology drawn from epidemiology, our setting allows us to estimate the rate of communication and how it varies with the characteristics of the underlying investor population.

Item Type: Article
Official URL:
Additional Information: © 2021 Elsevier B.V.
Divisions: Finance
Subjects: H Social Sciences > HG Finance
JEL classification: G - Financial Economics > G1 - General Financial Markets > G11 - Portfolio Choice; Investment Decisions
G - Financial Economics > G1 - General Financial Markets > G12 - Asset Pricing; Trading volume; Bond Interest Rates
G - Financial Economics > G1 - General Financial Markets > G14 - Information and Market Efficiency; Event Studies
G - Financial Economics > G2 - Financial Institutions and Services > G20 - General
Date Deposited: 05 Aug 2020 10:12
Last Modified: 13 Jun 2024 23:21

Actions (login required)

View Item View Item


Downloads per month over past year

View more statistics