The DOI matches its Crossref record; 13 of the 13 references it cites were found in a registry or an index.
Do Domestic Investors Have an Edge? The Trading Experience of Foreign Investors in Korea
Abstract
We investigate whether domestic investors have an edge over foreign investors in trading domestic stocks. Using Korean data, we show that foreign money managers pay more than domestic money managers when they buy and receive less when they sell for medium and large trades. The sample average daily trade-weighted disadvantage of foreign money managers is 21 basis points for purchases and 16 basis points for sales. There is also some evidence that domestic individual investors have an edge over foreign investors. The explanation for these results is that prices move more against foreign investors than against domestic investors before trades.
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Cites
On Persistence in Mutual Fund Performance
Carhart, M. M. (1997) · The Journal of Finance · doi:10.1111/j.1540-6261.1997.tb03808.x · Cited by 17,283
Inferring Trade Direction from Intraday Data
LEE, C. M. C., & READY, M. J. (1991) · The Journal of Finance · doi:10.1111/j.1540-6261.1991.tb02683.x · Cited by 3,147
The Geography of Investment: Informed Trading and Asset Prices
Coval, J. D., & Moskowitz, T. J. (2001) · Journal of Political Economy · doi:10.1086/322088 · Cited by 2,002
Grinblatt, M. (2000) · Journal of Financial Economics · doi:10.1016/s0304-405x(99)00044-6 · Cited by 1,639
Why is there a home bias? An analysis of foreign portfolio equity ownership in Japan
Kang, J.-K., & Stulz, R. (1997) · Journal of Financial Economics · doi:10.1016/s0304-405x(97)00023-8 · Cited by 1,542
Self-citationTesar, L. L., & Werner, I. M. (1995) · Journal of International Money and Finance · doi:10.1016/0261-5606(95)00023-8 · Cited by 1,240
Do foreign investors destabilize stock markets? The Korean experience in 1997
Choe, H. (1999) · Journal of Financial Economics · doi:10.1016/s0304-405x(99)00037-9 · Cited by 893
Self-citationA Model of Intertemporal Asset Prices Under Asymmetric Information
Wang, J. (1993) · The Review of Economic Studies · doi:10.2307/2298057 · Cited by 713
The effect of large block transactions on security prices: A cross-sectional analysis
Holthausen, R. W., Leftwich, R. W., & Mayers, D. (1987) · Journal of Financial Economics · doi:10.1016/0304-405x(87)90004-3 · Cited by 464
International Evidence on Institutional Trading Behavior and Price Impact
Chiyachantana, C. N., Jain, P. K., Jiang, C., & Wood, R. A. (2004) · The Journal of Finance · doi:10.1111/j.1540-6261.2004.00651.x · Cited by 286
Cited by
Barber, B. M., & Odean, T. (2008) · Review of Financial Studies · doi:10.1093/rfs/hhm079 · Cited by 4,556
Chung, C. Y., Lee, J., & Park, J. (2014) · Asia-Pacific Journal of Financial Studies · doi:10.1111/ajfs.12043 · Cited by 19
Metadata
- Authors
- Choe, H., Kho, B.-C., & Stulz, R. M.
- Venue
- Review of Financial Studies
- Publisher
- Oxford University Press (OUP)
- Published
- 2005
- Volume
- 18
- Issue
- 3
- Pages
- 795-829
- ISSN
- 0893-9454 (ISSN-L)
- 1465-7368
- OpenAlex
- W3122149394
- Cited by
- 616
- References
- 13
- FWCI
- 28.40
- Type
- journal article
- Language
- en
- Open access
- closed
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
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