Premium
INDIVIDUAL, INSTITUTIONAL, AND SPECIALIST TRADE PATTERNS BEFORE AND AFTER DISCLOSURE
Author(s) -
Welker Michael,
Sparks H. Charles
Publication year - 2001
Publication title -
journal of financial research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.319
H-Index - 49
eISSN - 1475-6803
pISSN - 0270-2592
DOI - 10.1111/j.1475-6803.2001.tb00768.x
Subject(s) - face (sociological concept) , business , economics , monetary economics , international economics , sociology , social science
We examine the trade response of individuals, institutional traders, and specialists to disclosures. We investigate reactions to good versus bad news and mandatory versus discretionary announcements. We find that individuals and institutions both have heightened trade activity before disclosures. Institutional trade runs counter to the price reaction to upcoming discretionary disclosures. Institutions' post‐announcement trade is consistent with the direction of the price reaction to the announcement, whereas individuals' post‐announcement trade runs counter to the price reaction. Although specialists face increased trade pressure both before and after announcements, strong directional imbalances in specialist trade are not observed. JEL classification: G14