Herding, Trade Reversals, and Cascading by Institutional Investors

Herding, Trade Reversals, and Cascading by Institutional Investors
Author: Russ Wermers
Publisher:
Total Pages:
Release: 2011
Genre:
ISBN:

Download Herding, Trade Reversals, and Cascading by Institutional Investors Book in PDF, Epub and Kindle

We analyze the portfolio holdings of mutual funds over the 1975-84 period to detect whether the funds engaged in quot;herdingquot; (simultaneous same-direction trading by a group of funds), quot;cascadingquot; (sequential same-direction trading by two groups of funds--one following the other), or quot;trade reversalsquot; (sequential opposite-direction trading by a single group of funds). Our results suggest the presence of herding behavior and short-term trade reversals, especially among the top performing funds; the funds especially exhibited herding behavior in stocks with high past returns. In addition, stocks that the funds bought as a herd had significantly higher abnormal returns, during the following quarters, than stocks that the funds sold as a herd. Finally, we find evidence of some groups of funds cascading their portfolio choices on the prior portfolio choices of other funds, in stocks with a large number of the 274 funds involved in trading.

Herd Behavior in Financial Markets

Herd Behavior in Financial Markets
Author: Sushil Bikhchandani
Publisher:
Total Pages: 38
Release: 2000
Genre: Capital market
ISBN:

Download Herd Behavior in Financial Markets Book in PDF, Epub and Kindle

Differences in Herding

Differences in Herding
Author: Wei Li
Publisher:
Total Pages: 31
Release: 2015
Genre:
ISBN:

Download Differences in Herding Book in PDF, Epub and Kindle

Using a trading volume-based measure, we study the differences between institutional and individual investors in herding. First, better-informed institutional investors trade more selectively, whereas less-informed individuals allocate their investments evenly across stocks. Second, individual investors rely more on public information for their trades as they are influenced by market sentiment and attention-grabbing events. Third, institutional investors react asymmetrically to up- and down-market movements, whereas individual investors do not. Finally, despite these differences in herding both individual and institutional investors pay close attention to one another's trades in forming a consensus.

Towards a New Theory of the Firm: Humanizing the Firm and the Management Profession

Towards a New Theory of the Firm: Humanizing the Firm and the Management Profession
Author: Josep Maria Rosanas Martí
Publisher: Fundacion BBVA
Total Pages: 444
Release: 2012
Genre: Business enterprises
ISBN: 8492937378

Download Towards a New Theory of the Firm: Humanizing the Firm and the Management Profession Book in PDF, Epub and Kindle

Este libro nace de la idea de que la empresa ha resultado ser una forma organizativa con capacidad de transformar la sociedad. Las empresas contribuyen a solucionar problemas reales, creando valor social y fomentando el cambio. La dirección y los directivos tienen una influencia notable en el bienestar de muchas personas. Pero ¿es posible que nuestras teorías de dirección sean erróneas; incluso que sean responsables de los errores que desembocaron en la crisis actual? IESE, como escuela de negocios comprometida con el desarrollo de líderes que aspiran a ejercer un impacto positivo profundo y duradero en las personas, es consciente de la tendencia de deshumanizar la profesión de directivo, pero también de la necesidad de reconocer su importancia y sus logros. Fue desde este compromiso, y con cierto sentido de urgencia, que en 2011 se organizó una conferencia internacional bajo el título Humanizing the Firm and the Management Profession , con el propósito de revertir esta tendencia, replanteando nuestras teorías de la empresa. El presente libro reúne las comunicaciones presentadas en ese encuentro. La obra se estructura en tres partes. La primera, On Leaders and Society: What Future Are We Building Today? , intenta contextualizar el debate ofreciendo un diagnóstico de la situación actual. Presenta unas perspectivas positivas pero también negativas; algunas reflexiones empíricas pero también propuestas normativas. La segunda, Building Blocks for a New Theory of the Firm , pretende desarrollar los elementos centrales de lo que sería una nueva teoría de la empresa: las bases de una teoría de gestión estratégica orientada a los grupos interesados; cuestiones filosóficas de fondo sobre en qué debería consistir la humanización; y los fundamentos de la responsabilidad social corporativa y de la implicación de los grupos interesados. Finalmente, la tercera parte, On Micro Foundations , repasa algunos de los elementos claves susceptibles de dar apoyo a una nueva teoría de la empresa. Por el camino, habremos visto algo de cómo es nuestro mundo, porqué es así, y qué podemos hacer para que sea diferente. Este libro está dirigido a un amplio público de académicos y profesionales de alto nivel interesados en aumentar la calidad de nuestra gestión por medio de una mejor teoría de la empresa.

IMF Staff Papers, Volume 47, No. 3

IMF Staff Papers, Volume 47, No. 3
Author: International Monetary Fund. Research Dept.
Publisher: International Monetary Fund
Total Pages: 140
Release: 2001-10-10
Genre: Business & Economics
ISBN: 1451973748

Download IMF Staff Papers, Volume 47, No. 3 Book in PDF, Epub and Kindle

This paper provides an overview of the recent theoretical and empirical research on herd behavior in financial markets. It looks at what precisely is meant by herding, the causes of herd behavior, the success of existing studies in identifying the phenomenon, and the effect that herding has on financial markets. The paper also surveys a selected number of studies that evaluated the demand for money using the error-correction model approach in the 1990s across a range of industrial and developing countries.

Energy Impacts of the Roadless Rule

Energy Impacts of the Roadless Rule
Author: United States. Congress. House. Committee on Resources. Subcommittee on Energy and Mineral Resources
Publisher:
Total Pages: 152
Release: 2001
Genre: Law
ISBN:

Download Energy Impacts of the Roadless Rule Book in PDF, Epub and Kindle

Herding of Institutional Traders

Herding of Institutional Traders
Author: Stephanie Kremer
Publisher:
Total Pages: 44
Release: 2010
Genre:
ISBN:

Download Herding of Institutional Traders Book in PDF, Epub and Kindle

This paper sheds new light on herding of institutional investors by using a unique and superior database that identifies every transaction of financial institutions. First, the analysis reveals herding behavior of institutions. Second, the replica- tion of the analysis with low-frequent and anonymous transaction data, on which the bulk of literature is based, indicates an overestimation of herding by previous studies. Third, our results suggest that herding by large financial institutions is not intentional but results from sharing the same preference and investment style. Fourth, a panel analysis shows that herding on the sell side in stocks is positively related to past returns and past volatility while herding on the buy side is nega- tively related to past returns. In contrast to the literature, this indicates that large financial institutions do not show positive feedback strategies. -- Investor Behavior ; Institutional Trading ; Stock Prices

International Financial Contagion

International Financial Contagion
Author: Stijn Claessens
Publisher: Springer Science & Business Media
Total Pages: 461
Release: 2013-04-17
Genre: Business & Economics
ISBN: 1475733143

Download International Financial Contagion Book in PDF, Epub and Kindle

No sooner had the Asian crisis broken out in 1997 than the witch-hunt started. With great indignation every Asian economy pointed fingers. They were innocent bystanders. The fundamental reason for the crisis was this or that - most prominently contagion - but also the decline in exports of the new commodities (high-tech goods), the steep rise of the dollar, speculators, etc. The prominent question, of course, is whether contagion could really have been the key factor and, if so, what are the channels and mechanisms through which it operated in such a powerful manner. The question is obvious because until 1997, Asia's economies were generally believed to be immensely successful, stable and well managed. This question is of great importance not only in understanding just what happened, but also in shaping policies. In a world of pure contagion, i.e. when innocent bystanders are caught up and trampled by events not of their making and when consequences go far beyond ordinary international shocks, countries will need to look for better protective policies in the future. In such a world, the international financial system will need to change in order to offer better preventive and reactive policy measures to help avoid, or at least contain, financial crises.