TY - JOUR
T1 - The relationship between individual stock trading and returns
T2 - The case of an emerging market
AU - Khani, Abdollah
AU - Saeedi, Ali
AU - Khorasani, Asieh Khadem
PY - 2013
Y1 - 2013
N2 - This research investigates the relationship between stock trading of individual investors and returns in short horizon in an emerging market. The results indicate that the individuals would like to invest in stocks after declining in the preceding month prices and they would like to sell after increasing in prices. Moreover, we find that there are positive abnormal returns in the month after high buying by individuals and there are negative abnormal returns following high individuals selling. The result is consistent with the literature that the individuals play roles of liquidity providers because they can meet the institutional need of immediacy.
AB - This research investigates the relationship between stock trading of individual investors and returns in short horizon in an emerging market. The results indicate that the individuals would like to invest in stocks after declining in the preceding month prices and they would like to sell after increasing in prices. Moreover, we find that there are positive abnormal returns in the month after high buying by individuals and there are negative abnormal returns following high individuals selling. The result is consistent with the literature that the individuals play roles of liquidity providers because they can meet the institutional need of immediacy.
KW - Behavioral finance
KW - Emerging markets
KW - Individual investors
KW - Individual stock trading
UR - http://www.scopus.com/inward/record.url?scp=84887153932&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84887153932&partnerID=8YFLogxK
U2 - 10.19030/jabr.v29i6.8216
DO - 10.19030/jabr.v29i6.8216
M3 - Article
AN - SCOPUS:84887153932
SN - 0892-7626
VL - 29
SP - 1799
EP - 1808
JO - Journal of Applied Business Research
JF - Journal of Applied Business Research
IS - 6
ER -