Portfolio choices of Norwegian investors III

The project aims to gain new insights into how individual investors respond to shocks; the introduction of fast internet, different sources of financial budget, and the introduction of new asset classes. The project builds on two earlier projects led by Hvide. More specifically, the research topics are - Insider trading in Norway, and whether insider trading can explain price runups prior to M&As - The effects of broadband on households' investments in unlisted firms in Norway, and their startup activity - The effects of the source of funds on investment decisions of individual investors - The trading activity and returns to cryptocurrency for individual investors The project team consists of senior and junior researchers from UiB, UC Berkeley, Ohio State University, and CBS. Oslo Bors, and Norges Bank, and the media.

BACKGROUND The project aims to gain new insights into how individual investors respond to shocks; the introduction of fast internet, different sources of financial budget, and the introduction of new asset classes. The project builds on two earlier projects led by Hvide, supported by the Norwegian Research Council, which achieved an outstanding publication record with several articles in top-3 finance journals. KEY ELEMENTS OF PROJECT - Innovative research questions with both academic and broader interest - World-class register data and cutting-edge empirical methods - An outstanding research team with a superb publication record - Direct relevance to ongoing policy debates in Norway and elsewhere on insider trading, the effects of broadband, the regulation of cryptocurrency trading RESEARCH TOPICS - Insider trading in Norway, and whether insider trading can explain price runups prior to M&As - The effects of broadband on households' investments in unlisted firms in Norway, and their startup activity - The effects of the source of funds on investment decisions of individual investors - The trading activity and returns to cryptocurrency for individual investors DATABASE We use a world-class household finance database based on several Norwegian registers. The database was purchased and has received concession from the Data Authorities in 2017. PROJECT TEAM The other senior researchers (co-authors) are from UC Berkeley, University of Chicago/Ohio State, and CBS. The junior researchers (co-authors) are 2 Ph.D students and 1 Post-doc from the University of Bergen. PUBLICATION TARGET 3 articles in top-3 finance journals. DISSEMINATION The project group has a superb track record in generating media interest for their research. We plan to write columns for voxeu.org and chronicles for Norwegian newspapers. In addition we expect interest from policy makers, in particular the Financial authorities (Finanstilsynet), Oslo Bors, and Norges Bank, and the media.