IQ and Stock Market Trading
Speaker
Abstract
| We analyze whether IQ influences trading behavior, combining equity trade data with two decades of scores from an intelligence test administered to nearly every Finnish male of draft age. Controlling for a remarkable variety of factors, we find that high-IQ investors are less subject to the disposition effect, more aggressive about tax-loss trading, and more likely to supply liquidity when stocks experience large price movements. |
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| The Erasmus Finance Seminar is jointly sponsored by ERIM and the Tinbergen Institute. |
| www.eur.nl/financegroup |
| Contact information: |
| Viorel Roscovan |
