Horn, M., Schneider, J., Oehler, A., 2024, Do Transactions on Social Trading Platforms Predict the Stock Market Behavior of the Aggregate Private Sector?, Finance Research Letters 66, 105668.

Abstract
We analyze the relation between virtual stock holding changes on a social trading platform and stock holding changes of all private investors in a national economy. Our data sources are the social trading platform wikifolio.com and the Securities Holdings Statistics-Base plus (SHS-base) of the German central bank. We find that the transactions of signal providers on wikifolio.com are a good proxy for aggregate transactions of private investors – mirrored by the SHS-base – during the same month, and a good predictor for the aggregate transactions of the private investors in the following month.

Keywords

Social trading, Herding, Fintech, Attention-induced trading, Retail Investor Behavior

JEL Classifications

G11, G14, G23, G40, G41, G50

Zuvor:

Horn, M., Schneider, J., Oehler, A., 2023, Do Transactions on Social Trading Platforms Predict the Stock Market Behavior of the Aggregate Private Sector?; Future Finance and Economics Association 2nd Conference on INternational Finance; Sustainable and Climate Finance and Growth, June 18-20; Economics of Financial Technology Conference 2023, June 21-23.