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  -