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Institutional trading and attention bias

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  • Hung, Weifeng

Abstract

Share repurchase announcements with higher turnover ratio attract more attention from institutions than events with lower turnover ratio. The stock price behavior is associated with the institutional trading behavior around share repurchase announcements. The higher exposure to the attention bias, the worse the post-trade performance the institution earns. Because of the agency problem and lack of sophistication, domestic mutual funds suffer from attention bias in Taiwan.

Suggested Citation

  • Hung, Weifeng, 2014. "Institutional trading and attention bias," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 29(C), pages 71-91.
  • Handle: RePEc:eee:intfin:v:29:y:2014:i:c:p:71-91
    DOI: 10.1016/j.intfin.2013.12.001
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    References listed on IDEAS

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    Cited by:

    1. Hung, Weifeng & Huang, Sheng-Tang & Lu, Chia-Chi & Liu, Nathan, 2015. "Trading behavior and stock returns in Japan," The Quarterly Review of Economics and Finance, Elsevier, vol. 58(C), pages 200-212.

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