講座：Why Do Institutional Investors Hold Their Own Companies' Stocks? Superior Information, Conflict of Interests, or Familiarity
題 目：Why Do Institutional Investors Hold Their Own Companies’ Stocks? Superior Information, Conflict of Interests, or Familiarity
嘉 賓：Lingling Zheng, Associate Professor, Department of Finance, Renmin University of China
主持人：張 然 助理教授 上海交通大學安泰經濟與管理學院金融系
Publicly traded institutional investors overweight their own companies’ stocks in their portfolios. Public institutions are momentum traders in general, but are contrarians when trading their own stocks. They purchase their own stocks during negative earnings announcements and large price declines, while selling other stocks around bad news. Public institutions are less likely to herd with other institutions when trading their own stocks. Public institutions’ stocks exhibit lower crash risk and contain less firm-specific information than other similar stocks. Our results are consistent with conflict of interests impacting the portfolio choice and trading decisions of institutional investors.
Lingling Zheng is an Associate Professor of Finance at Renmin University of China. She received her Ph.D. in Finance from Imperial College London. Her research has been published in the Journal of Financial Economics, Review of Financial Studies and Management Science. She has won several best paper awards and research awards, and her paper has been featured in the Economist.