Lucky investors trade more : evidence from a large and salient exogenous price shock

• Autor(a) principal: Brito, Matheus Carrijo
• Data de Publicação: 2022
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Institucional do FGV (FGV Repositório Digital)
• Texto Completo: https://hdl.handle.net/10438/32448
• topic: Luck; Portfolio Turnover; Trading Activity; Environmental Disaster; Sorte; Giro-de-portfolio; Número de Trades; Desastre Ambiental; Economia; Investimentos - Administração; Investidores (Finanças); Sorte; Ações (Finanças) - Preços; Desastres ambientais

This paper examines the impact of luck on retail investors’ trading activity. We document an increase in trading activity and a worsening in the performance of lucky investors. We considered lucky investors who sold stock before an unexpected environmental disaster that caused a significant devaluation of this stock. After the event, lucky investors present 11% of portfolio turnover, 46% of numbers of trade, and 35% of the number of days with trade higher than similar investors. Also, the portfolio return risk-unadjusted is 6% and adjusted is 4% lower for lucky investors. Placebo tests indicate that our results are due to this specific stock by investors that sold this stock, and no effect is found using past outcomes.