Heterogeneity of Institutional Investors and Investment Effects: Empirical Evidence from Chinese Securities Market

2013 ◽  
pp. 963-971
Author(s):  
Ying Jin
Keyword(s):  
Empirical Evidence ◽  
Institutional Investors ◽  
Securities Market

Institutional Investors on the Securities Market

2003 ◽  
pp. 95-101
Author(s):  
O. Khmyz
Keyword(s):  
Financial Crisis ◽  
Capital Market ◽  
Hedge Funds ◽  
Institutional Investors ◽  
Securities Market ◽  
Main Role ◽  
Investment Funds ◽  
Investment Process ◽  
The Capital Market

Acording to the author's opinion, institutional investors (from many participants of the capital market) play the main role, especially investment funds. They supply to small-sized investors special investment services, which allow them to participate in the investment process. However excessive institutialization and increasing number of hedge-funds may lead to financial crisis.

Behavioral biases on institutional investors: a literature review

Kybernetes ◽  
2016 ◽  
Vol 45 (10) ◽  
pp. 1668-1684 ◽  
Author(s):  
Selim Aren ◽  
Sibel Dinç Aydemir ◽  
Yasin Şehitoğlu
Keyword(s):  
Literature Review ◽  
Empirical Evidence ◽  
Institutional Investors ◽  
Design Methodology ◽  
Home Bias ◽  
Institutional Investor ◽  
Disposition Effect ◽  
Herding Behavior ◽  
Content Type ◽  
Behavioral Biases

Purpose The purpose of this paper is to evaluate published institutional investor research focused on home bias, disposition effect, and herding behavior in recognized journals and to ascertain some substantial gaps with regard to them. Design/methodology/approach Recently published studies between 2005 and 2014, which intend to examine behavioral biases on institutional investors, have been reviewed through juxtaposing them under the three fundamental titles and figuring them according to the explanation why these biases occurs. Findings The research examining home bias has identified the presence of this effect on institutional investors and explained it with information or culture. Yet, the existence of disposition effect has not been found in the extant research. These studies have estimated disposition effect through overconfidence and experience. Also, extant studies have provided evidence of herding behavior, attributing this behavior to pursuing same published information and protecting their reputation and career. Originality/value Currently, no study, which reviews and evaluates the empirical research body on behavioral biases displayed institutional investors, exists. To the authors’ knowledge, this is the first paper which highlights the empirical evidence on these bias and summarizes the explanations in these studies for these biases exhibited by institutional investors. This could contribute to the researchers focusing on behavioral biases on institutional investors by providing them with a meaningful figuralization regarding their evidence and explanation.

scholarly journals Individual and institutional trading volume around firm-specific announcements

2016 ◽  
Vol 12 (4) ◽  
pp. 422-444 ◽  
Author(s):  
Priyantha Mudalige ◽  
Petko S Kalev ◽  
Huu Nhan Duong
Keyword(s):  
Institutional Investors ◽  
Trading Volume ◽  
Securities Market ◽  
Individual Investors ◽  
Order Book ◽  
Volume Data ◽  
Content Type ◽  
Before And After ◽  
Abnormal Trading Volume ◽  
Trading Behaviour

Purpose – The purpose of this paper is to investigate the immediate impact of firm-specific announcements on the trading volume of individual and institutional investors on the Australian Securities Exchange (ASX), during a period when the market becomes fragmented. Design/methodology/approach – This study uses intraday trading volume data in five-minute intervals prior to and after firm-specific announcements to measure individual and institutional abnormal volume. There are 70 such intervals per trading day and 254 trading days in the sample period. The first 10 minutes of trading (from 10.00 to 10.10 a.m.) is excluded to avoid the effect of opening auction and to ensure consistency in the “starting time” for all stocks. The volume transacted during five-minute intervals is aggregated and attributed to individual or institutional investors using Broker IDs. Findings – Institutional investors exhibit abnormal trading volume before and after announcements. However, individual investors indicate abnormal trading volume only after announcements. Consistent with outcomes expected from a dividend washing strategy, abnormal trading volume around dividend announcements is statistically insignificant. Both individual and institutional investors’ buy volumes are higher than sell volumes before and after scheduled and unscheduled announcements. Research limitations/implications – The study is Australian focused, but the results are applicable to other limit order book markets of similar design. Practical implications – The results add to the understanding of individual and institutional investors’ trading behaviour around firm-specific announcements in a securities market with continuous disclosure. Social implications – The results add to the understanding of individual and institutional investors’ trading behaviour around firm-specific announcements in a securities market with continuous disclosure. Originality/value – These results will help regulators to design markets that are less predatory on individual investors.

Study on Information Mining Technology with Empirical Research on China's Securities Market Transactions’ Random Walk

2013 ◽  
Vol 859 ◽  
pp. 399-404
Author(s):  
Tong Tong Sun ◽  
Wei Li Xia
Keyword(s):  
Random Walk ◽  
Empirical Research ◽  
Institutional Investors ◽  
Securities Market ◽  
Mining Technology ◽  
Information Mining ◽  
Random Walk Hypothesis ◽  
Rescaled Range ◽  
Fractal Market Hypothesis

this paper is in the context of China's securities market vigorously developing institutional investors, uses "Fractal Market Hypothesis" and rescaled range methods to deal with the data. By doing the information mining on those sample, the results show that China's securities market yield does not follow a random walk hypothesis and institutional investors yield does not follow a random walk hypothesis. This shows that after more than 10 years of vigorous development of institutional investors, the goal that stabilize the market and make the market more effectively has not been realized and continuing to increase the intensity of the development of the institutional investors is still needed

scholarly journals Intraday Return Reversals: Empirical Evidence from the Korean ETF Market

2019 ◽  
Author(s):  
Sangki Lee ◽  
Chung-hun Hong
Keyword(s):  
Empirical Evidence ◽  
Institutional Investors ◽  
Positive Influence ◽  
Short Selling ◽  
Noise Traders ◽  
Index Funds ◽  
Korean Market ◽  
Return Reversals ◽  
Significant Factors ◽  
Attention Hypothesis

We find that the overnight returns of Korean exchange-traded index funds (ETFs) are significantly positive, whereas the subsequent intraday returns are negative. These intraday return reversals are caused by relatively higher opening prices than the closing prices. In the Korean ETF market, where institutional investors are dominant participants, the return reversals are not explained by the attention hypothesis as in Berkman et al. [1]. Hence, we investigate whether the disagreement hypothesis can explain return reversals. Under the disagreement situations between positive and negative traders at the open, positive traders can have a positive influence on the ETF prices by increasing their investments. However, negative traders, who give up investments due to limited short selling opportunities in the ETF market, have no effects on the prices. Comparing ETF markets with KOSPI 200 Futures where there are no restrictions on short selling, we find that short selling constraints are significant factors for the return reversals. This implies that disagreement among the investors can cause return reversals even in the markets without noise traders. Using unique Korean market data, we conclude that return reversals cannot be completely explained by the attention hypothesis, and that disagreement among investors is also a significant factor for the return reversals. This study contributes to the existing literature by showing that the attention hypothesis does not explain return reversals in the ETF market completely, and suggesting the disagreement hypothesis as an alternative.

scholarly journals THE IMPORTANCE OF INSTITUTIONAL INVESTORS DIVERSIFICATION IN THE DEVELOPMENT OF THE GOVERNMENT SECURITIES MARKET

MEST Journal ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 28-36
Author(s):  
Rodica Hincu ◽  
Ana Litocenco
Keyword(s):  
Institutional Investors ◽  
System Development ◽  
Securities Market ◽  
Complex Process ◽  
Domestic Savings ◽  
International Investors ◽  
The Republic ◽  
The Government ◽  
Domestic Banks ◽  
Market Infrastructure

The development of a government securities market is a complex process that is interrelated with the financial and market system development of each country. For many countries, this implies huge challenges that often are amplified by economic issues. For instance, some government securities markets rely on a few domestic banks for funding, which makes competition scarce, and transaction costs high. In addition to this, the lack of a sound market infrastructure may make specific actions to develop a government securities market premature and ineffective. At the same time, the insufficiency of institutional investors, low domestic savings rates, and lack of interest from international investors generate a small, highly homogeneous investor group, contrary to the diversity needed for an efficient market. Furthermore, economic instability, often accompanied by high fiscal deficits, rapid growth of the money supply, and a deteriorating exchange rate, weakens investor confidence and increases the risks associated with the development of a market for government securities. This article aims to describe the importance of a diversified investor base in developing a government securities market and to show the experience of the Republic of Moldova in this regard.

scholarly journals The impact of related parties’ trading on the listed company’s earnings management - evidence in Vietnam

Management ◽  
2020 ◽  
Vol 24 (2) ◽  
pp. 181-208
Author(s):  
Nguyen Thi Phuong Hong ◽  
Tran Van Loi
Keyword(s):  
Earnings Management ◽  
Empirical Evidence ◽  
Cash Flow ◽  
Firm Size ◽  
Securities Market ◽  
Management Level ◽  
Revenue Growth ◽  
Operating Cash Flow ◽  
Conclusion Section ◽  
The Impact

SummaryThis study considers the impact of related parties’ trading (RPTs) on the listed company’s earnings management level (EM) in Vietnam’s securities market, of which EM is measured according to the modified Jones model by Dechow and Associates (1995). Through using 5 more control variables as public. How auditing firm, firm size, financial leverage, revenue growth and operating cash flow affect EM, The research results show that RPTs impact the same dimension on EM level. The study provides empirical evidence of the impact of RPTs on the EM level of companies listed on Vietnam’s securities market. Among its results to science is that it indicated with evidence, the higher the RPTs are, the greater its EM level becomes. We also identify practical contributions and limitations showin in the conclusion section.

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