Institutional Investor Trading in a Short Investment Horizon: Evidence from the Korean Stock Market |
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| Authors: | Chune Young Chung Chang Liu Kainan Wang |
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| Affiliation: | 1. School of Business Administration, College of Business and Economics, Chung-Ang University, Seoul, Korea;2. Department of Financial Economics and Information Systems, College of Business Administration, Hawai’i Pacific University, Honolulu, Hawai’i, USA;3. Department of Finance, College of Business and Innovation, University of Toledo, Toledo, Ohio, USA |
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| Abstract: | ![]()
We examine the weekly trading activities of institutional investors in the Korean stock market. First, we find that average net trades by institutional investors this week are negatively related to one-week lagged returns, suggesting that they could be contrarian traders. Second, our finding shows that institutional investors’ net trades this week are positively related to the net trades next week, consistent with persistent trading and/or herding behavior. Third, we find that institutional net trades are positively related to the post one-week returns. Finally, our findings are most pronounced in the group of short-term institutional investors. |
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| Keywords: | daily trading data emerging market herding institutional investors investment performance investment strategy trading behaviors |
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