• Title of article

    Institutional industry herding

  • Author/Authors

    Choi، نويسنده , , Nicole and Sias، نويسنده , , Richard W.، نويسنده ,

  • Issue Information
    روزنامه با شماره پیاپی سال 2009
  • Pages
    23
  • From page
    469
  • To page
    491
  • Abstract
    We examine whether institutional investors follow each other into and out of the same industries. Our empirical results reveal strong evidence of institutional industry herding. The cross-sectional correlation between the fraction of institutional traders buying an industry this quarter and the fraction buying last quarter, for example, averages 40%. Additional tests suggest that correlated signals primarily drive institutional industry herding. Our results also provide empirical support for “style investing” models.
  • Keywords
    Herding , institutional investors , Style investing
  • Journal title
    Journal of Financial Economics
  • Serial Year
    2009
  • Journal title
    Journal of Financial Economics
  • Record number

    2211819