%0 Thesis %1 Shive2006Essays %A Shive, Sophie A. %C Ann Arbor %D 2006 %K 2006 Assets Essays FDZ_IUP Finance Home_bias ISSP ISSP_input2016 International_finance Investment_policy Investors Patriotism Polls_&_surveys Portfolio_choice Portfolio_management Prices Securities_trading Social_interaction Social_sciences Studies checked english input2016 isspbib2016 phdthesis %P 91-91 p. %T Essays in portfolio choice %X This work seeks to investigate in a realistic way how investment choices are determined by investor characteristics, and in some cases, the effect of these choices on asset prices. In a first piece, I model individual stock purchases and sales in a framework that allows for both independently motivated trades and for trades caused by social influence. I test the model with data on all individual investor transactions in the 20 highest volume stocks in Finland from 1/1995 to 12/2003. I find statistically and economically significant social effects on trading behavior in both individual purchases and sales after controlling for education, income, past return, number of businesses in the area to measure familiarity of investors with firms, and investor population. There is also evidence that socially motivated trades predict returns, over and above the effect of all trades, volume, and past returns. In a second piece co-authored with fellow-graduate student Adair Morse, we find that more patriotic countries have greater equity home bias. In a panel of World Values Surveys covering 53 countries, measures of patriotism are positively related to home bias measures after controlling for transaction barriers, diversification benefits, information and familiarity. Changes in patriotism vary with changes in the home bias. The results are robust to using ISSP measures of patriotism covering 24 countries and within-U.S. data from the Survey of Consumer Finances. Instrumenting patriotism with social variables uncorrelated with economic and political factors confirms that patriotism affects investment. The average country invests $18 to $30 billion more abroad with a one standard deviation drop in patriotism. %@ 9780542923371

@phdthesis{Shive2006Essays, abstract = {This work seeks to investigate in a realistic way how investment choices are determined by investor characteristics, and in some cases, the effect of these choices on asset prices. In a first piece, I model individual stock purchases and sales in a framework that allows for both independently motivated trades and for trades caused by social influence. I test the model with data on all individual investor transactions in the 20 highest volume stocks in Finland from 1/1995 to 12/2003. I find statistically and economically significant social effects on trading behavior in both individual purchases and sales after controlling for education, income, past return, number of businesses in the area to measure familiarity of investors with firms, and investor population. There is also evidence that socially motivated trades predict returns, over and above the effect of all trades, volume, and past returns. In a second piece co-authored with fellow-graduate student Adair Morse, we find that more patriotic countries have greater equity home bias. In a panel of World Values Surveys covering 53 countries, measures of patriotism are positively related to home bias measures after controlling for transaction barriers, diversification benefits, information and familiarity. Changes in patriotism vary with changes in the home bias. The results are robust to using ISSP measures of patriotism covering 24 countries and within-U.S. data from the Survey of Consumer Finances. Instrumenting patriotism with social variables uncorrelated with economic and political factors confirms that patriotism affects investment. The average country invests $18 to $30 billion more abroad with a one standard deviation drop in patriotism.}, added-at = {2019-03-20T18:49:19.000+0100}, address = {Ann Arbor}, author = {Shive, Sophie A.}, biburl = {https://www.bibsonomy.org/bibtex/2a7cfface963b1c60aec9792795ebead0/gesis_dump}, interhash = {060ae5d49d995de9834da336c801d7dd}, intrahash = {a7cfface963b1c60aec9792795ebead0}, isbn = {9780542923371}, keywords = {2006 Assets Essays FDZ_IUP Finance Home_bias ISSP ISSP_input2016 International_finance Investment_policy Investors Patriotism Polls_&_surveys Portfolio_choice Portfolio_management Prices Securities_trading Social_interaction Social_sciences Studies checked english input2016 isspbib2016 phdthesis}, note = {(ISSP)}, notes = {http://search.proquest.com/docview/305310268?accountid=14657; http://sfx.lib.uchicago.edu/sfx_local?url_ver=Z39.88-2004&rft_val_fmt=info:ofi/fmt:kev:mtx:dissertation&genre=dissertations+%26+theses&sid=ProQ:ProQuest+Dissertations+%26+Theses+Full+Text&atitle=&title=Essays+in+portfolio+choice&issn=&date=2006-01-01&volume=&issue=&spage=&au=Shive%2C+Sophie+A&isbn=9780542923371&jtitle=&btitle=&rft_id=info:eric/&rft_id=info:doi/}, pages = {91-91 p.}, school = {University of Michigan}, tagadata-svko-dda-test = {10338}, tagadata-svkoddatest2 = {10331}, timestamp = {2019-10-01T13:00:45.000+0200}, title = {Essays in portfolio choice}, type = {Ph.D.}, year = 2006 }