No. 25: COVID-19 and investor behavior

Jahr: 2020

Typ: Working Paper

Open Science:

Bronze

Abstract

How do retail investors respond to the outbreak of COVID-19? We use transaction-level trading data to show that investors significantly increase their trading activities as the COVID-19 pandemic unfolds, both at the extensive and at the intensive margin. The average weekly trading intensity increases by 13.9% as the number of COVID-19 cases doubles. The increase in trading is especially pronounced for male and older investors, and affects stock and index trading. Following the 9.99%-drop of the Dow Jones Industrial Average on March 12, investors significantly reduce the usage of leverage across all asset classes.

Veröffentlichungsinformationen

TRR 266 researchers

Regina Ortmann Paderborn University

Regina Ortmann is Junior Professor for International Business Taxation at Paderborn University. She is member of the American Accounting Association, European Accounting Association, Center for Tax and Accounting Research (CETAR), German Economic Association of Business Administration (GEABA) and affiliated member at the Norwegian Center for Taxation (NoCeT).

Matthias Pelster

External researchers

Sascha Tobias Wengerek

DOI

DOI Link

Open Science

To cite this article

Ortmann, R., Pelster, M., & Wengerek, S. T. (2020). COVID-19 and investor behavior. TRR 266 Accounting for Transparency Working Paper Series No. 25. https://dx.doi.org/10.2139/ssrn.3589443

Zugehörige Projekte

B06

Effects of Demand-driven Disclosures in Tax and Sustainability

+ 1

Beteiligte Institutionen

Die Hauptstandorte vom TRR 266 sind die Universität Paderborn (Sprecherhochschule), die HU Berlin und die Universität Mannheim. Alle drei Standorte sind seit vielen Jahren Zentren für Rechnungswesen- und Steuerforschung. Hinzu kommen Wissenschaftler der LMU München, der Frankfurt School of Finance and Management, der Goethe-Universität Frankfurt, der Universität zu Köln und der Leibniz Universität Hannover, die die gleiche Forschungsagenda verfolgen.