The consequences of non-trading institutional investors

被引：1

作者：

Irani, Mohammad ^{[1
,2
]}

Kim, Hugh Hoikwang ^{[1
]}

机构：

[1] Univ South Carolina, Darla Moore Sch Business, Columbia, SC USA

[2] Univ South Carolina, Darla Moore Sch Business, 1014 Greene St, Columbia, SC 29208 USA

来源：

FINANCIAL MANAGEMENT | 2023年 / 52卷 / 03期

关键词：

behavioral bias; institutional investors; non-trades; portfolio management; MUTUAL FUND FLOWS; CROSS-SECTION; INFORMATION ACQUISITION; DELISTING BIAS; PERFORMANCE; INVESTMENT; PERSISTENCE; MARKET; RISK; ATTENTION;

D O I：

10.1111/fima.12418

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We document that institutional investors do not trade a single share, on average, in one of five stocks in their portfolio for an extended period. Investors with high inaction are likely to underperform in the future. Our results show a similar underperformance for stocks with a high non-trading level of institutional investors. We investigate several behavioral biases as potential drivers of the non-trades and find no evidence of distraction, overconfidence, and disposition effects. Institutional investors' tendency to sell stocks with salient price movements and recency bias best explains their inactions. Overall, the non-trading behavior of institutional investors serves as a unique predictor for their future performance and potential behavioral biases are driving this predictability.

引用

页码：433 / 481

页数：49

共 96 条

[1] Portfolio choice and trading in a large 401(k) plan [J].