Write a 300-word discussion reply to the discussion post
\nbelow. Recommend 1 peer reviewed journal article that provides additional
\ninformation on their topic. In your<\/p>\n
response, you should give a summary of the article in your
\nown words and<\/p>\n
discuss why it is relevant to their forum topic. It must be
\ndifferent than<\/p>\n
articles they reference in their forum. Include an APA
\nformatted citation at<\/p>\n
the bottom of the reply.<\/p>\n
<\/p>\n
Reply To Discussion Post:<\/p>\n
<\/p>\n
Learning from Coworkers: Peer Effects on Individual
\nInvestment Decisions<\/p>\n
<\/p>\n
Introduction<\/p>\n
<\/p>\n
Peer effects on individual investments look at the ways in
\nwhich the financial decisions people make are affected by what their peers do.
\nThe research is of paramount importance to the functioning of employee stock
\npurchase plans (ESPPs) and the more general impact of social networks on
\ninvestments. You can get a good deal of input from your friends and family.
\ni.e., someone\u2019s social network buys into a certain stock or asset so that may
\nlead them to do the same, even if it\u2019s not the most ideal thing for their own
\nbudget. Observing the impact of peer influences on people\u2019s investment
\ndecisions is also how we learn about the social learning and herding behaviors
\nof financial markets. In this short, we will be looking at some recent findings
\nand areas of future research.<\/p>\n
<\/p>\n
<\/p>\n
Current Trends<\/p>\n
<\/p>\n
Several themes from the peer effects in investment research
\nhave been recently brought to the fore by recent studies. The employees in turn
\nget a lot of influence by the ESPP participation and trading behavior of their
\nco-workers, Ouimet and Tate (2020). This social learning phenomenon is most
\nintense in informationally and demographically comparable employees. Bursztyn
\net al. (2014) used a field experiment and discovered that social learning and
\nsocial utility strongly influence investing \u2013 helping to explain how herding
\nbehavior occurs in markets. Likewise, Barber and Odean (2013) noted that retail
\ninvestors make poor investment decisions and suggested the possibility of
\nwork-place networks improving financial decisions through peer influence.
\nNguyen et al. (2016) looked at mutual fund flows and found that investors
\nreplicate the investment decisions of others in the same group (herding). Liu
\net al. (2017) also investigated peer effects on stock market trading, and
\nconcluded that peer effects can increase the number of stocks traded and
\nvolatility. All of these researches together reinforce how powerful peer
\neffects are for influencing investment decision making and the significance of
\nunderstanding peer effects in various financial environments.<\/p>\n
<\/p>\n
<\/span><\/p>\n <\/p>\n Future Research<\/p>\n <\/p>\n There are several promising areas where research could be <\/p>\n <\/span><\/p>\n <\/p>\n References<\/p>\n <\/p>\n Barber, B. M., & Odean, T. (2013). The behavior of <\/p>\n Bursztyn, L., Ederer, F., Ferman, B., & Yuchtman, N. <\/p>\n Liu, Y., Wang, J., & Zhang, L. (2017). Peer effects on <\/p>\n Nguyen, T., Pham, H., & Nguyen, P. (2016). Herd behavior <\/p>\n \n Ouimet, P., & Tate, G. (2020). Learning from Coworkers: Write a 300-word discussion reply to the discussion post below. Recommend 1 peer reviewed journal article that provides additional information on their topic. In your response, you should give a summary of the article in your own words and discuss why it is relevant to their forum topic. It must be different than articles they […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","meta":[],"disciplines":[18],"paper_types":[],"tagged":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/questions\/37396"}],"collection":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/questions"}],"about":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/types\/questions"}],"author":[{"embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/comments?post=37396"}],"version-history":[{"count":0,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/questions\/37396\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/media?parent=37396"}],"wp:term":[{"taxonomy":"disciplines","embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/disciplines?post=37396"},{"taxonomy":"paper_types","embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/paper_types?post=37396"},{"taxonomy":"tagged","embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/tagged?post=37396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\ntaken next. An example is to look at how well targeted investor education
\ncounters the harm of peer influence. In addition to offering tailored training,
\nresearchers could monitor whether such interventions enabled people to make
\nbetter, more self-directed investments. An alternative subject for research is
\nthe impact of digital platforms and FinTech on driving or amplifying peer
\neffects on investment choice. The more technology comes into financial services,
\nthe more important it is to know how it impacts peer behavior. Second,
\nexploring peer effects in different cultures and organizations might give us
\nclues about how far the present findings can be generalized. There could be
\ndifferences between individuals\u2019 responses to peer effects that depend on
\nculture and organization, and these differences can help us understand how peer
\neffects are exhibited around the world. Last but not least, studying long-term
\nconsequences of peer influence on wealth and retirement is an important future
\nresearch priority. Social networks influence investment behavior through
\ninformation, peer effect and market sentiment. You can always look to them for
\nsome help and advice, but investors need to take what they hear with a grain of
\nsalt and decide on what is right for them according to their own financial
\nobjectives and level of risk. It is possible to know the role of peer effects
\nin maintaining people\u2019s financial health over time to design strategies to
\nfacilitate sustainable, positive investment behavior.<\/p>\n
\nindividual investors. Handbook of the Economics of Finance, 1, 153-235.
\nhttps:\/\/doi.org\/10.1016\/B978-0-44-453594-8.00022-6Links to an external site.<\/p>\n
\n(2014). Understanding Peer Effects in Financial Decisions: Evidence from a
\nField Experiment. Econometrica, 82(4), 1273-1301.
\nhttps:\/\/doi.org\/10.3982\/ECTA11991Links to an external site.<\/p>\n
\nstock trading: Evidence from a natural experiment. Journal of Financial
\nEconomics, 125(3), 387-413. https:\/\/doi.org\/10.1016\/j.jfineco.2017.05.002Links
\nto an external site.<\/p>\n
\nin mutual fund flows: Evidence from Vietnamese stock market. Journal of
\nBehavioral Finance, 17(2), 141-148.
\nhttps:\/\/doi.org\/10.1080\/15427560.2016.1150404Links to an external site.<\/p>\n
\nPeer Effects on Individual Investment Decisions. The Journal of Finance, 75(1),
\n133\u2013172. http:\/\/www.jstor.org\/stable\/45277789Links to an external site.<\/p>\n","protected":false},"excerpt":{"rendered":"