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Do individual investors pay attention to the information acquisition activities of institutional investors?

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  • Lu, Jing
  • Chen, Rongze

Abstract

This study investigates individual investors' responses to institutional investors' information acquisition activities. We examine the association between institutional investors' site visits and individual investors' posts on the online message board. We find that the total abnormal posts of individual investors significantly increase after institutional investors' site visits. Additional tests show that individual investors will pay more attention when institutional investors visit firms with low profitability, high earnings management, low manager sentiment, and poor environmental, social, and governance (ESG) performance.

Suggested Citation

  • Lu, Jing & Chen, Rongze, 2023. "Do individual investors pay attention to the information acquisition activities of institutional investors?," Finance Research Letters, Elsevier, vol. 58(PD).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pd:s1544612323009510
    DOI: 10.1016/j.frl.2023.104579
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    References listed on IDEAS

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    More about this item

    Keywords

    Individual investors' attention; Institutional investors; Information acquisition activities; Stock message board;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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