Iqbal, Muhammed SabeehSalih, A.Akdeniz, Levent2022-02-112022-02-112021-051544-6123http://hdl.handle.net/11693/77262This 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.EnglishLong-term returnsInstitutional herdingInvestment horizonArticle10.1016/j.frl.2020.101692