Who moves the stock market in an emerging country – Institutional or retail investors?

Deddy P. Koesrindartoto, Aurelius Aaron, Inka Yusgiantoro, Wirata A. Dharma and Abdurrohman Arroisi

Research in International Business and Finance, 2020, vol. 51, issue C

Abstract: By analyzing the dynamic behavior of institutional and retail investors in the Indonesia Stock Exchange using their completed transactions (comprising over 250 million observations), this study highlights that their trading strategies and behavior, in which institutions play a more important role than individuals in the market, are indeed different. Specifically, past trading activities by individual (institutional) investors have significantly affected the current trading behaviors and strategies of individual investors (both investor types). Furthermore, retail (institutional) investors are most likely to perform contrarian (momentum) strategies and trade frequently (infrequently) with small (large) amounts of money and short (long) holding periods.

Keywords: Market microstructure; Emerging market; Institutional investors; Individual investors; Trading strategies (search for similar items in EconPapers)
JEL-codes: G14 G15 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:51:y:2020:i:c:s0275531919300327

DOI: 10.1016/j.ribaf.2019.101061

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