Institutional Investors Heterogeneity, Future Earnings and the Informativeness of Stock Prices

Author

Ding Fangfei ; Hou Ningning ; Li Su

Author_Institution

Sch. of Commercial & Manage., Hunan Univ., Changsha, China

fYear

2013

fDate

16-18 Jan. 2013

Firstpage

887

Lastpage

890

Abstract

This paper test the effects of different institutional investors on the extent to which stock prices reflect future earnings. The study find that the extent to which stock prices reflects future earnings increases with the institutional ownership. but further divided into types of institutional investors, only pressure-resistant institutional investors can significantly enhance the in formativeness of stock prices for future earnings while pressure-sensitive institutional investors cannot. So it can be said that the incremental impact of institutional investors on the extent to which stock prices reflect future earnings due to pressure-resistant institutional investors.

Keywords

investment; pricing; stock markets; future earnings; institutional investors heterogeneity; institutional ownership; pressure-resistant institutional investors; pressure-sensitive institutional investors; stock price informativeness; Intelligent systems; Abnormal return; Pressure-resistant institutional investors; Pressure-sensitive institutional investors; Unexpected earnings;

fLanguage

English

Publisher

ieee

Conference_Titel

Intelligent System Design and Engineering Applications (ISDEA), 2013 Third International Conference on

Conference_Location

Hong Kong

Print_ISBN

978-1-4673-4893-5

Type

conf

DOI

10.1109/ISDEA.2012.210

Filename

6455669