An Empirical and Experimental Study of Traders in Stock Market

Last registered on March 24, 2019
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Pre-Trial

Trial Information

General Information

Title
An Empirical and Experimental Study of Traders in Stock Market
RCT ID
AEARCTR-0003962
Initial registration date
March 24, 2019

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
March 24, 2019, 2:29 PM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country
Bangladesh
Region

Primary Investigator

Name
Vy Nguyen
Affiliation
Monash University
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Other Primary Investigator(s)

PI Name
Kazi Iqbal
PI Affiliation
BIDS
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PI Name
Asad Islam
PI Affiliation
Monash University
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Additional Trial Information

Status
On going
Start date
2016-06-01
End date
2019-09-30
Keywords
Finance & Microfinance, Firms & Productivity, Other
Additional Keywords
JEL code(s)
Secondary IDs
Abstract
We collaborate with several brokerage houses in Dhaka stock market to obtain daily trading data of more than 350 retail stock market traders/investors and conduct a stock market short course training among them. The intervention includes a short course training for the traders. We use lab-in-the-field experiments to examine other behavioural channels such as myopic loss aversion, ambiguity, risk and time preference of these investors. Finally, we combine the knowledge test and experiment results with a unique dataset on daily transactions and portfolio positions of these traders over two years to study the link between individual investment decision under controlled experiment setting and their natural domain.
External Link(s)

Registration Citation

Citation
Iqbal, Kazi, Asad Islam and Vy Nguyen. 2019. "An Empirical and Experimental Study of Traders in Stock Market." AEA RCT Registry. March 24. https://doi.org/10.1257/rct.3962-1.0
Former Citation
Iqbal, Kazi, Asad Islam and Vy Nguyen. 2019. "An Empirical and Experimental Study of Traders in Stock Market." AEA RCT Registry. March 24. https://www.socialscienceregistry.org/trials/3962/history/44068
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2016-08-01
Intervention End Date
2018-09-30

Primary Outcomes

Primary Outcomes (end points)
Individual investment behaviour, Portfolio performance, Portfolio Risk, Trading Frequencies, Laboratory investment
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
We collaborate with several brokerage houses in Dhaka stock market to obtain daily trading data of more than 350 retail stock market traders/investors and conduct field experiments among them. Our RCTs involve giving financial training to stock market traders and investigating their investment behaviour in a lab-in-the-field setting. We then combine the experiment results with a unique dataset on daily transactions and portfolio positions of these traders over two years to study the link between individual investment decision under controlled experiment setting and their natural domain.

For the financial training component, we randomize participants into two groups: the treatment group receives the training on financial literacy and basic education and the control group will receive the training once the trial ends.

Experimental Design Details
Randomization Method
The participants are individuals from various areas of Dhaka city. They are small investors in the stock market, investing their money through brokerage houses. For this research eight brokerage houses have been selected. Individuals investing through these eight brokerage houses are invited through an open invitation. First 500 individuals showing interest will be supplied with consent forms. Among these 500, we will finally randomly recruit the first 350 individuals supplying their consent forms.

All the randomization in the field and in the lab-in-the-field are done in office by a computer.
Randomization Unit
At individual level
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
8
Sample size: planned number of observations
350 traders/investors
Sample size (or number of clusters) by treatment arms
350
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
MUHREC
IRB Approval Date
2016-07-07
IRB Approval Number
CF16/1675 - 2016000871
Analysis Plan

Post-Trial

Post Trial Information

Study Withdrawal

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Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials