Iqbal, M. S.Salih, A.Akdeniz, Levent2024-03-132024-03-132022-11-161059-0560https://hdl.handle.net/11693/114679In this study, we investigate the differential contribution of institutions with different investment horizons in the book-to-market effect. We find that long-horizon institutions tend to buy (sell) stocks with positive (negative) past intangible information. This behavior exacerbates market overreaction and magnifies intangible return reversals, thus contributing to the book-to-market effect. On the other hand, short-horizon institutions trade independent of intangible information, and their trading in the direction of intangible information does not contribute to the book-to-market effect. Moreover, our findings also support that short-horizon institutions are better informed than long-horizon institutions.enCC BY 4.0 DEED (Attribution 4.0 International)InstitutionsInvestment horizonBook-to-marketMarket overreactionArticle10.1016/j.iref.2022.10.0171873-8036