Investment Performance of Individual Investors: Evidence from the Korean Stock Market

Jinwoo Park and Minhyuk Kim

Emerging Markets Finance and Trade, 2014, vol. 50, issue 1S, 194-211

Abstract: We use unique equity holdings data for each type of investor to investigate the relationship between individual investors' shareholdings and variables such as corporate characteristics and stock returns in the Korean stock market. We find that stocks with the highest individual holdings underperform stocks with the lowest individual holdings. This return difference is attributable to individual investors' uninformed stock-picking skills resulting from lack of attention given to or misinterpretation of readily accessible firm fundamentals. The results also indicate that characteristics of stocks preferred by individual investors are associated with small capitalization, low stock price, low profitability, and high turnover.

Keywords: individual investor; investment performance; trading behavior; uninformed trader (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://mesharpe.metapress.com/link.asp?target=contribution&id=W740Q84701K2U694 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:50:y:2014:i:1s:p:194-211

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().