Oehler, A., Horn, M., Wendt, S., 2016, Benefits from social trading? Empirical evidence for certificates on wikifolios, International Review of Financial Analysis 46, 202-210.

Abstract
Social trading describes the idea that signal providers make their investment decisions available to other investors who follow them. The performance of social trading has hardly been in the focus of research so far. We analyze the performance of 1084 wikifolio certificates used in social trading and issued in 2012 and 2013.

We apply factor models to analyze these certificates' returns and alphas relative to benchmark indexes. We find that, on average, wikifolios do not outperform the market. However, wikifolios with geographical focus provide better performance than those without. Furthermore, the best performing wikifolios earn significant short-term
excess returns.

Keywords

Social trading, Social investing, Retail investors, Wikifolios, Herd behavior

JEL Classifications

G11, G23, D14

Zuvor:

Oehler, A., Horn, M., Wendt, S., 2016, Benefits from social trading? Empirical evidence for certificates on wikifolios; 30th Annual Meeting of The Academy of Financial Services, October 20-21, 2016; Research in Behavioral Finance Conference 2016, September 15-16.