Browsing by Subject "Long-term returns"
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Item Open Access The price impact of same- and opposing-direction herding by institutions with different investment horizons(Academic Press, 2021-05) Iqbal, Muhammed Sabeeh; Salih, A.; Akdeniz, LeventThis paper examines the price impact of the herding behaviour of short- and long-horizon institutional investors. We categorize the institutional herding as same-side herding when both types of institutions herd on the buy-side or sell- side together and as opposite-side herding when short-horizon institutions buy while the long-horizon institutions sell or vice versa. We find that the previously documented destabilizing impact of long-horizon institutional herding is only observed on opposite-side herding. Moreover, short-horizon institutional herding improves the stock price discovery process confirming the belief that they are more informed.