Existing literature documents that net share issuance significantly predicts cross-sectional stock returns, and yet institutional investors in aggregate do not trade on the net share issuance effect. Motivated by the findings in the existing literature that short-term institutions and short...

We examine the role of institutional investors underlying post-earnings-announcement drift (PEAD). Our results show that while institutional investors generally herd on earnings news, such correlated trading among institutions does not eliminate or reduce market underreaction to earnings...