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The DOI matches its Crossref record.

The impact of institutional trading on stock prices

Open access
Lakonishok, Josef, Shleifer, Andrei, Vishny, Robert W.·1992·Journal of Financial Economics
DOI 10.1016/0304-405x(92)90023-q
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Abstract

This paper uses a new data set of quarterly portfolio holdings of 769 all-equity pension funds between 1985 and 1989 to evaluate the potential effect of their trading on stock prices. We address two aspects of trading by money managers: herding, which refers to buying (selling) the same stocks as other managers buy (sell) at the same time; and positive-feedback trading, which refers to buying winners and selling losers. These two aspects of trading are commonly a part of the argument that institutions destabilize stock prices. At the level of individual stocks at quarterly frequencies, we find no evidence of substantial herding or positive-feedback trading by pension fund managers, except in small stocks. Also, there is no strong cross-sectional correlation between changes in pension funds' holdings of a stock and its abnormal return.

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Metadata

Authors
Lakonishok, J., Shleifer, A., & Vishny, R. W.
Venue
Journal of Financial Economics
Publisher
Elsevier BV
Published
1992-08
Volume
32
Issue
1
Pages
23-43
ISSN
0304-405X (ISSN-L)
DOI
10.1016/0304-405x(92)90023-q
OpenAlex
W2047803175
Cited by
2,062
References
0
FWCI
15.88
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: The impact of institutional trading on stock prices. https://app.cochat.ai/papers/10.1016/0304-405x(92)90023-q
The paper
Lakonishok, J., Shleifer, A., & Vishny, R. W. (1992). The impact of institutional trading on stock prices. Journal of Financial Economics. https://doi.org/10.1016/0304-405x(92)90023-q

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.