Other people's money: A comparison of institutional investors*

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Eraslan V., Omole J., Sensoy A., Ozdamar M.

EMERGING MARKETS REVIEW, cilt.53, 2022 (SSCI, Scopus) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 53
  • Basım Tarihi: 2022
  • Doi Numarası: 10.1016/j.ememar.2022.100914
  • Dergi Adı: EMERGING MARKETS REVIEW
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, Academic Search Premier, ABI/INFORM, Business Source Elite, Business Source Premier, EconLit, PAIS International
  • Ankara Üniversitesi Adresli: Hayır

Özet

Using unique equity ownership data, we investigate the stock picking preferences and return forecasting performances of institutional investors that manage their own money against those that manage others'. We reveal that these investors' preferences significantly differ in historical patterns, liquidity and prudence when picking stocks. In particular, 'own money managers' display a risk-seeking behaviour whereas "others' money managers" exhibit risk-averse charac-teristics. However, our results indicate that both types of investors are well informed, albeit own money managers excel in the short-term while others' money managers are successful in the long-term.