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GLAMOUR VERSUS VALUE: TRADING BEHAVIOR OF INSTITUTIONS AND INDIVIDUAL INVESTORS
Author(s) -
Sharma Vivek,
Hur Jungshik,
Lee Heiwai
Publication year - 2008
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.1475-6803.2008.00232.x
Subject(s) - value (mathematics) , institutional investor , business , stock (firearms) , preference , stock price , net asset value , growth stock , monetary economics , economics , financial economics , microeconomics , stock market , finance , market maker , mechanical engineering , paleontology , corporate governance , horse , machine learning , series (stratigraphy) , computer science , engineering , biology
We design a new metric to measure the net buying and selling by institutions and individual investors and find that from 1980 to 2004 institutional investors were net buyers of growth stocks and net sellers of value stocks, implying that individual investors were net buyers of value stocks and net sellers of glamour stocks. The institutional preference for glamour and value stocks seems to be related to sell‐side analysts' recommendations and recent favorable stock price performances, especially during the post‐1994 period. Finally, the institutional buying of growth stocks and sale of value stocks was not based on superior information.