TY - BOOK AU - HAN, Areum AU - CHUNG, Chune Young TI - Are individual investors less informed than institutional investors? Unique evidence from investor trading behaviours around bad mergers in Korean financial market PY - 2013/// CY - New York PB - Taylor & Francis KW - individual investors KW - institutional investors KW - information asymmetry N2 - This article presents the trading behaviours of individual and institutional investors in Korean mergers and acquisitions market. Based on Chen et al. (2007), we consider a bidder's negative abnormal announcement-period return as a measure for bad merger. To investigate the investor trading behaviours around the bad mergers, we employ a unique daily trading data of different groups of investors in Korean stock market. Our finding shows that institutional investors sell their shares on a bidding firm before announcement of a bad merger, while individual investors buy the shares. In addition, we find that institutional investors continue to sell their shares on a bidding firm even after announcement of a bad merger, but individual investors keep buying them. Hence, our results newly support the hypothesis that individual investors are less informed and/or less sophisticated than institutional investors UR - https://doi.org/10.1080/13504851.2013.791012 ER -