Do institutional investors have superior stock selection ability in China?

China Journal of Accounting Research

卷:4

Yongxing Xu¹  Yihong Deng² 

[1] The Finance Department of Guangxi Zhuang Autonomous Region, China;

[2] The School of Economics & Management, Tsinghua University, China;

关键词: Institutional investors;    Stock selection ability;    Individual investors;   

DOI  :  10.1016/j.cjar.2011.06.001

来源: DOAJ

【 摘 要 】

This paper uses unique data on the shareholdings of both institutional and individual investors to directly investigate whether institutional investors have better stock selection ability than individual investors in China. Controlling for other factors, we find that institutional investors increase (decrease) their shareholdings in stocks that subsequently exhibit positive (negative) short- and long-term cumulative abnormal returns. In contrast, individual investors decrease (increase) their shareholdings in stocks that subsequently exhibit positive (negative) short- and long-term cumulative abnormal returns. These findings indicate that institutional investors have superior stock selection ability in China.

【 授权许可】

Unknown