| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 959900 | Journal of Financial Economics | 2009 | 23 Pages |
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.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Nicole Choi, Richard W. Sias,