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Investment Preference and Performance between Institutional and Individual Investors
Chen, Yi Ching
Chen, Wei Kuang
Lin, Ching Ting
Chen, Yi Ching
|Issue Date: ||2014-07-21 15:38:35 (UTC+8)|
This paper surveys the literatures relating to the investment preference and performance between institutional and individual investors in order to determine the reason of return disparity. 54 papers are surveyed to understand the preference and performance through three aspects: trading strategies, cognitive and emotional biases, and information content. Disparity of returns is due to trading behaviors and stock preferences. Institutional investors tend to be informed and make correct decision when trading. However, individual investors tend to invest in the opposite direction to institutions and provide liquidity for them. Therefore, institutional investor have better performance due to their less irrational behaviors and correct selection of underlying objects.
In the fourth part, using data of 658 listed equities from Taiwan Economic Journal from Taiwan’s stock market, we investigate the relation between investors’ ownership and financial indicators. The regression analysis shows that the stock preferences between individual and institutional investor are different. Results indicate that institutional and individual investors have distinct preferences based on turnover rate, size, price to earnings per share ratio, stock volatility, and dividend yield. Foreign institutions’ stock selection preference is similar to domestic institutions.
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|Source URI: ||http://thesis.lib.nccu.edu.tw/record/#G0101352022|
|Data Type: ||thesis|
|Appears in Collections:||[金融學系] 學位論文|
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