Do individual investors pay attention to the information acquisition activities of institutional investors?

Jing Lu and Rongze Chen

Finance Research Letters, 2023, vol. 58, issue PD

Abstract: This study investigates individual investors' responses to institutional investors' information acquisition activities. We examine the association between institutional investors' site visits and individual investors' posts on the online message board. We find that the total abnormal posts of individual investors significantly increase after institutional investors' site visits. Additional tests show that individual investors will pay more attention when institutional investors visit firms with low profitability, high earnings management, low manager sentiment, and poor environmental, social, and governance (ESG) performance.

Keywords: Individual investors' attention; Institutional investors; Information acquisition activities; Stock message board (search for similar items in EconPapers)
JEL-codes: G12 G14 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pd:s1544612323009510

DOI: 10.1016/j.frl.2023.104579

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