Work

Thy Neighbor's Portfolio: Word‐of‐Mouth Effects in the Holdings and Trades of Money Managers

Year: 2005

Type: article

Abstract: ABSTRACT A mutual fund manager is more likely to buy (or sell) a particular stock in any quarter if other managers in the same city are buying (or selling) that same stock. This pattern shows up even when the fund manager and the stock in question are located far apart, so it is distinct from anything having to do with local preference. The evidence can be interpreted in terms of an epidemic model in which investors spread information about stocks to one another by word of mouth.

Source: The Journal of Finance

DOI: 10.1111/j.1540-6261.2005.00817.x

Authors: HARRISON HONG, JEFFREY D. KUBIK, JEREMY C. STEIN

Institutions: Princeton University, National Bureau of Economic Research, Harvard University, Syracuse University

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2890848123

FWCI: 40.7

Cites: 45

Cited by: 940

Related to: 10