Institutional trading and attention bias

Weifeng Hung

Journal of International Financial Markets, Institutions and Money, 2014, vol. 29, issue C, 71-91

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.

Keywords: Share repurchase announcements; Attention bias; Institutional trading (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:29:y:2014:i:c:p:71-91

DOI: 10.1016/j.intfin.2013.12.001

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