“Celebrating the 45th Anniversary of the University of Macau”
Social Influence on Household Equity Investment: Evidence from Randomized Military Drafts
Prof. Kevin Tseng
Professor, Chinese University of Hong Kong
Date: 27 April 2026 (Monday)
Time: 9:00-12:30
Venue: E22-G013
Host: Prof. Rubin HAO, Assistant Professor in Accounting
Abstract
A central theme in accounting research is how information environments shape economic decisions through spillovers beyond the focal firm. We provide the first large-scale causal evidence that such spillovers also arise among household investors, where peer-to-peer interactions constitute a previously underexplored channel of information acquisition. Exploiting Taiwan’s compulsory military draft, which randomly assigns 349,715 individuals to military units, we form peer groups exogenous to personal preferences, characteristics, and networks. We find that exposure to peers with higher stock market participation increases an individual’s own participation by 12.6% relative to the mean, with effects that persist long after service. Peer influence extends beyond entry: individuals disproportionately purchase peers’ stocks, earn higher post-service returns, and maintain more diversified portfolios. These benefits are concentrated among those exposed to financially sophisticated peers, consistent with learning rather than imitation. Importantly, peer influence steers investors away from speculative lottery-like stocks. Taken together, our findings reveal that the composition of peer groups determines whether social interactions degrade or enhance decision quality, identifying peer networks as a novel spillover channel in the household information environment.
Speaker
Kevin Tseng is a Professor at the Chinese University of Hong Kong (CUHK) Business School and Director of the newly established Faculty Development Centre. Professor Tseng’s research explores how access to innovation and information interact to shape economic behavior and market dynamics. His research spans knowledge spillovers, asset pricing, disclosure, innovation economics, behavioral economics, corporate finance, and household finance. His articles have appeared in leading scholarly journals, including The Journal of Finance, the Journal of Accounting and Economics, Review of Financial Studies, The Accounting Review, Management Science, the Journal of Financial and Quantitative Analysis, and Contemporary Accounting Research. He currently serves as Editor of the Journal of Contemporary Accounting & Economics, Associate Editor of Accounting and Business Research and the Asia-Pacific Journal of Accounting & Economics, and a member of the Executive Board of the Asian Innovation and Entrepreneurship Association (AIEA).
All are welcome!
