Institutional Overcrowding Everyday

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F23%3A10425900" target="_blank" >RIV/00216208:11230/23:10425900 - isvavai.cz</a>
Result on the web
<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=6cZejsTKx7" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=6cZejsTKx7</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1080/15427560.2021.1892678" target="_blank" >10.1080/15427560.2021.1892678</a>

Result language
angličtina
Original language name
Institutional Overcrowding Everyday
Original language description
We operationalize Stein's (2009) overcrowding concept in the context of investor response to daily stock return shocks and examine its underlying behavioral motivation. We define chasing at the overshooting point as evidence of overcrowding. Using trading data by investor type from Korea, we find that while institutional investors display informed trading, they fail to recognize the predictable overshooting point when responding to return shocks and/or accompanying information, resulting in an overcrowded response. The main consequence is suffering a cost of immediacy. Size of institutional crowding is positively related to the size of initial response and institutional investor population, but unrelated to future returns, with no evidence of adapting to past performance; collectively consistent with overcrowding driven by aversion to miss out.
Czech name
—
Czech description
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Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50201 - Economic Theory

Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2023
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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