Terrance Odean

About

Terrance Odean is the Rudd Family Foundation Professor of Finance at the Haas School of Business at the University of California, Berkeley. He is an expert in behavioral finance, investor behavior, and the influence of individual investors on asset prices. Odean has held various academic and editorial roles, including editor and associate editor positions at prominent finance journals, and is an advisory editor of the Financial Planning Review. His research has been recognized with awards such as the James R. Vertin Award from the CFA Institute in 2016 for research of notable relevance and enduring value to investment professionals. Odean studied judgment and decision making as an undergraduate at UC Berkeley with Nobel Laureate Daniel Kahneman. His work focuses on investor welfare, behavioral finance, and the impact of investor actions on financial markets. He has been a faculty member at Haas since 2001, serving as the Rudd Family Foundation Chair since 2008, and has contributed extensively to the academic community through research, editorial work, and advisory roles.

Research topics

• Business
• Finance
• Monetary economics
• Economics
• Financial economics
• Psychology
• Geography
• Marketing

Selected publications

• Which Factors Matter to Investors? Evidence from Mutual Fund Flows

  Review of Financial Studies · 2016-06-21 · 552 citations

  articleOpen accessSenior author

  When assessing a fund manager's skill, sophisticated investors will consider all factors (priced and unpriced) that explain cross-sectional variation in fund performance. We investigate which factors investors attend to by analyzing mutual fund flows as a function of recent returns decomposed into alpha and factor-related returns. Surprisingly, investors attend most to market risk (beta) when evaluating funds and treat returns attributable to size, value, momentum, and industry factors as alpha.…

  PublisherOA PDFDOI

• Attention‐Induced Trading and Returns: Evidence from Robinhood Users

  The Journal of Finance · 2022 · 482 citations

  ABSTRACT We study the influence of financial innovation by fintech brokerages on individual investors’ trading and stock prices. Using data from Robinhood, we find that Robinhood investors engage in more attention‐induced trading than other retail investors. For example, Robinhood outages disproportionately reduce trading in high‐attention stocks. While this evidence is consistent with Robinhood attracting relatively inexperienced investors, we show that it is also driven in part by the app's un…

  PublisherDOI

• Attention Induced Trading and Returns: Evidence from Robinhood Users

  SSRN Electronic Journal · 2020-01-01 · 208 citations

  articleOpen access
  PublisherDOI

• A (Sub)penny For Your Thoughts: Tracking Retail Investor Activity in TAQ

  SSRN Electronic Journal · 2022 · 87 citations

  PublisherDOI

• A (Sub)penny for Your Thoughts: Tracking Retail Investor Activity in TAQ

  The Journal of Finance · 2024-05-03 · 68 citations

  articleOpen access

  ABSTRACT We placed 85,000 retail trades in six retail brokerage accounts from December 2021 to June 2022 to validate the Boehmer et al. algorithm, which uses subpenny trade prices to identify and sign retail trades. The algorithm identifies 35% of our trades as retail, incorrectly signs 28% of identified trades, and yields uninformative order imbalance measures for 30% of stocks. We modify the algorithm by signing trades using the quoted spread midpoints. The quote midpoint method does not affec…

  PublisherOA PDFDOI

Recent grants

• CAREER: Studies of Investor Behavior

  NSF · $252k · 2002–2007

Frequent coauthors

• Brad M. Barber

  89 shared

• Yu‐Jane Liu

  Peking University

  34 shared

• Yi‐Tsung Lee

  Ming Chi University of Technology

  32 shared

• Ning Zhu

  9 shared

• Hans K. Hvide

  8 shared

• Christopher G. Schwarz

  Mayo Clinic

  5 shared

• Simon Gervais

  5 shared

• Javed Ahmed

  5 shared

Education

• PhD, Haas School of Business

  University of California Berkeley

  1997

Awards & honors

• James R. Vertin Award from the CFA Institute (2016)
• Carleton College Alumni Distinguished Achievement Award (201…
• Barclays Global Investors Award for Best Conference Paper at…
• Barclays Global Investment / Michael Brennan Prize for the B…
• Graham and Dodd Award of Excellence (2000)

Similar researchers at University of California, Berkeley

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• Martin Lettauh-71
• Adair Morseh-56