Wealthy individual investors and stock markets' tail risk.
This paper employs a unique data set to analyze the trading behavior of wealthy individual investors across Mainland China and their impact on Chinese stock markets' tail risk. Results show that the wealthy individual investors' trading behavior can explain Chinese stock markets' tail...
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| Format: | Article |
| Language: | English |
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Public Library of Science (PLoS)
2024-01-01
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| Series: | PLoS ONE |
| Online Access: | https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0282173&type=printable |
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| _version_ | 1841555369205170176 |
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| author | He Yu Rong Lu Hu Yang Bin Zhang |
| author_facet | He Yu Rong Lu Hu Yang Bin Zhang |
| author_sort | He Yu |
| collection | DOAJ |
| description | This paper employs a unique data set to analyze the trading behavior of wealthy individual investors across Mainland China and their impact on Chinese stock markets' tail risk. Results show that the wealthy individual investors' trading behavior can explain Chinese stock markets' tail risk, and the daily investment portfolios based on the network density of wealthy individual investors have significant excess returns. This paper also investigates the determinants of wealthy individual investors' trading behavior with the social network method and the spatial econometric model, and reveals that wealthy individuals benefit from the spillover effect of their trading behavior through the investor networks. The results of this paper not only reveal micro evidence for the formation mechanism of asset prices, but also provide insight into the behavior of wealthy individual investors. |
| format | Article |
| id | doaj-art-236ce395c13747a489e46d4e7355e36e |
| institution | Kabale University |
| issn | 1932-6203 |
| language | English |
| publishDate | 2024-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| spelling | doaj-art-236ce395c13747a489e46d4e7355e36e2025-01-08T05:33:32ZengPublic Library of Science (PLoS)PLoS ONE1932-62032024-01-01195e028217310.1371/journal.pone.0282173Wealthy individual investors and stock markets' tail risk.He YuRong LuHu YangBin ZhangThis paper employs a unique data set to analyze the trading behavior of wealthy individual investors across Mainland China and their impact on Chinese stock markets' tail risk. Results show that the wealthy individual investors' trading behavior can explain Chinese stock markets' tail risk, and the daily investment portfolios based on the network density of wealthy individual investors have significant excess returns. This paper also investigates the determinants of wealthy individual investors' trading behavior with the social network method and the spatial econometric model, and reveals that wealthy individuals benefit from the spillover effect of their trading behavior through the investor networks. The results of this paper not only reveal micro evidence for the formation mechanism of asset prices, but also provide insight into the behavior of wealthy individual investors.https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0282173&type=printable |
| spellingShingle | He Yu Rong Lu Hu Yang Bin Zhang Wealthy individual investors and stock markets' tail risk. PLoS ONE |
| title | Wealthy individual investors and stock markets' tail risk. |
| title_full | Wealthy individual investors and stock markets' tail risk. |
| title_fullStr | Wealthy individual investors and stock markets' tail risk. |
| title_full_unstemmed | Wealthy individual investors and stock markets' tail risk. |
| title_short | Wealthy individual investors and stock markets' tail risk. |
| title_sort | wealthy individual investors and stock markets tail risk |
| url | https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0282173&type=printable |
| work_keys_str_mv | AT heyu wealthyindividualinvestorsandstockmarketstailrisk AT ronglu wealthyindividualinvestorsandstockmarketstailrisk AT huyang wealthyindividualinvestorsandstockmarketstailrisk AT binzhang wealthyindividualinvestorsandstockmarketstailrisk |