Trade synchronization and social ties in stock markets
Unit of Computational Sciences, Tampere University, Korkeakoulunkatu 1, 33720, Tampere, Finland
Accepted: 29 October 2022
Published online: 17 November 2022
Previous studies suggest that individuals sharing similar characteristics establish stronger social relationships. This motivates us to examine what combinations of socioeconomic investor attributes are more likely to be associated with joint trading behavior. We use a unique data set on actual social ties between investors and find that similarities in investors’ age, geographical location, or length of the co-employment can affect trade synchronization under certain circumstances. Our findings have implications for the analysis of investor networks.
Key words: Investor network / Trade synchronization / Social network / Insider network / Network inference
© The Author(s) 2022
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