Share Repurchase Announcements and Reversal in
Institutional Trade Imbalance: Evidence from Taiwan

ASIAIR > College of Management > Department of Finance > Proceedings > Item 310904400/63790

Please use this identifier to cite or link to this item: http://asiair.asia.edu.tw/ir/handle/310904400/63790

Title:	Share Repurchase Announcements and Reversal in Institutional Trade Imbalance: Evidence from Taiwan
Authors:	Hung, Weifeng
Contributors:	Department of Finance, Feng Chia University, Taiwan
Date:	2013
Issue Date:	2013-08-07 01:37:21 (UTC+0)
Publisher:	Department of Finance, Feng Chia University, Taiwan
Abstract:	By using a unique dataset of daily institutional trading, we are the first to provide evidence that the share repurchase announcements (SRAs) reverse institutional trading behavior: Institutions are net sellers before SRAs and net buyers (or less net selling) after, especially for domestic mutual funds. We show that SRAs with higher prior turnover ratio (more visibility) attract more attention from institutions than events with lower prior turnover ratio. The reversal in institutional trading surrounding SRAs is non-informational. The higher exposure to the attention bias (the higher reversal tendency), the worse the post-trade performance the institution earns. In particular, the evidence shows that the stock price behavior is associated with the institutional trading behavior around SRAs.
Relation:	2013中部學術財金研討會論文發表
Appears in Collections:	[Department of Finance] Proceedings

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