Foreign Portfolio Investors Before and During a Crisis

Woochan Kim (wckim@korea.ac.kr) and Shang-Jin Wei

No 6968, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Different categories of foreign portfolio investors in Korea have differences as well as similarities in their trading behavior before and during a currency crisis. First, non-resident institutional investors are always positive feedback traders, whereas resident investors were negative feedback (contrarian) traders before the crisis but switch to be positive feedback traders during the crisis. Second, individual investors herd significantly more than institutional investors. Non-resident (institutional as well as individual) investors herd significantly more than their resident counterparts. Third, differences in the Western and Korean news coverage are correlated with differences in net selling by non-resident investors relative to resident investors.

JEL-codes: F21 F3 (search for similar items in EconPapers)
Date: 1999-02
New Economics Papers: this item is included in nep-fmk and nep-ifn
Note: IFM
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (51)

Published as Kim, Woochan and Shang-Jin Wei. "Foreign Portfolio Investors Before And During A Crisis," Journal of International Economics, 2002, v56(1,Jan), 77-96.

Downloads: (external link)
http://www.nber.org/papers/w6968.pdf (application/pdf)

Related works:
Journal Article: Foreign portfolio investors before and during a crisis (2002)
Working Paper: Foreign Portfolio Investors before and during a Crisis (1999)
Working Paper: Foreign Portfolio Investors Before and During a Crisis (1999)
Working Paper: Foreign Portfolio Investors Before and during a Crisis (1999)
Working Paper: Foreign Portfolio Investors before and during a Crisis (1999)
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:nbr:nberwo:6968

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w6968

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by (wpc@nber.org).