Social Interaction in the Family: Evidence from Investors’ Security Holdings

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We show that investors tend to hold the same securities as their parents. This intergenerational correlation is stronger for mothers and family members who are more likely to communicate with each other. An instrumental variables estimation and a natural experiment suggest that the correlation reflects social influence. This influence runs not only from parents to children, but also vice versa. The resulting holdings of identical securities increase intergenerational correlations in portfolio choice, exacerbate wealth inequality, and amplify the consequences of behavioral biases.
Original languageEnglish
Article numberrfac060
Pages (from-to)1297-1327
Number of pages31
JournalReview of Finance
Issue number4
Early online date10 Sept 2022
Publication statusPublished - 1 Jul 2023
MoE publication typeA1 Journal article-refereed


  • Social interaction
  • portfolio choice
  • wealth inequality
  • behavioral bias


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