Attention of Investors

Last registered on October 15, 2021

View Trial History

Pre-Trial

Trial Information

General Information

Title

Attention of Investors

RCT ID

AEARCTR-0008348

Initial registration date

October 13, 2021

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

October 15, 2021, 4:21 PM EDT

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

Locations

Country

United States of America

Region

Primary Investigator

Name

George Loewenstein

Affiliation

Carnegie Mellon University

Contact Primary Investigator

Other Primary Investigator(s)

PI Name

Edika Quispe-Torreblanca

PI Affiliation

Oxford

Contact Investigator

PI Name

John Gathergood

PI Affiliation

Nottingham University

Contact Investigator

PI Name

Neil Stewart

PI Affiliation

University of Warwick

Contact Investigator

Additional Trial Information

Status

In development

Start date

2021-10-14

End date

2021-12-01

Keywords

Finance & Microfinance

Additional Keywords

Investor attention

JEL code(s)

G41

Secondary IDs

Prior work

This trial does not extend or rely on any prior RCTs.

Abstract

This experiment is designed to test whether investors pay more attention to good news about a stock than to bad news. We will recruit individuals who have been invested in at least one individual stock for at least 6 months. In an initial survey, we will ask them for the name of the stock with the greatest total valuation of shares that they have been holding for at least 6 months. Then, we will send them an email giving them information about their stock's performance over the last 6 months. Finally, we will send out a survey asking them to recall information that they received in the email about their stock's performance. Our prediction is that they will be more likely to recall information when their stock went up, or went up relative to the S&P.

External Link(s)

Registration Citation

Citation

Gathergood, John et al. 2021. "Attention of Investors." AEA RCT Registry. October 15. https://doi.org/10.1257/rct.8348-1.0

Sponsors & Partners

Experimental Details

Interventions

Intervention(s)

This is not mainly an intervention study. The main IV is whether the individual's stock rose or fell over the 6 month period, and whether it rose or fell relative to the S&P index.

The only intervention is whether, in the email that shows participants information about their stock's performance we include a line that, following "Please fill out the survey below" (which all participants receive), says "which will prompt you with questions about your stock's performance." We do not predict that this will have a substantial impact, but include the additional words as a check on the robustness of the phenomenon.

Intervention Start Date

2021-10-14

Intervention End Date

2021-12-01

Primary Outcomes

Primary Outcomes (end points)

Test of their memory for the information, which we provide in the email, about their stock's performance over the last 6 months.

Primary Outcomes (explanation)

For each of the memory questions, the individual might recall the information, misremember it, or report that they cannot recall it. We will code each of these variables as a "1" if they correctly recall the information, and a "0" if they misremember it or cannot recall it. For questions asking for numbers, we will count them as recalling the information if they are within plus or minus 25% of the correct answer. We will then add up ones and zeros to create a single composite memory index.

Secondary Outcomes

Secondary Outcomes (end points)

We will also examine memory questions individually.

Secondary Outcomes (explanation)

Experimental Design

The main IV for the experiment arises from natural variation: specifically, whether their stock gained or lost value over the 6 month period, and whether it gained or lost value relative to the S&P. The only manipulation in the experiment is whether we inform them that they are going to be asked questions about their stock's performance.

Experimental Design Details

Randomization Method

Randomization will be performed by Qualtrics.

Randomization Unit

individual investor

Was the treatment clustered?

Experiment Characteristics

Sample size: planned number of clusters

Sample size: planned number of observations

Approximately 250 individuals (depending on our ability to recruit)

Sample size (or number of clusters) by treatment arms

125

Minimum detectable effect size for main outcomes (accounting for sample design and clustering)

A total sample of 216 individuals, 108 individuals per group of investors who have held stocks under/overperforming the S&P500, must be obtained to detect an absolute difference of 0.20 between proportions of correctanswers with 90% power using a two-sided 5% Two-sample comparison of proportions power calculation.

Supporting Documents and Materials

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information

IRB