We use a proprietary database of institutional investors' daily stock transactions to test the validity of a common managerial perception that transient institutions sell their stock ownership indiscriminately upon announcements of small negative earnings surprises, resulting in unwarranted...

Prior studies fail to find that dedicated institutional investors (those characterized by long trading horizons and high ownership stakes in portfolio firms) trade in anticipation of future performance. In this study, I find that dedicated institutions sell shares of bankrupt firms at least one...

This study reexamines the evidence underlying the prior conclusion that investors overreact to accruals accruals are negatively associated with subsequent abnormal returns (i.e., the accrual anomaly). This study shows that the two features of the research design used to document the accrual...