We examine how institutional investors trade stocks with high research and development (R&D) expenses and investigate whether they can detect value-relevant R&D. We document significant differences between hedge funds and other institutional investors in terms of their trading in high R&D...

This paper explores the time-varying institutional investor preference for lottery-like stocks. On average, institutional investor holdings reflect an aversion to lottery-like stocks. However, I find that an institutions' aversion to lottery-like stocks is reduced when investor sentiment is low....

Firms that maintain business operations in multiple industries (i.e. conglomerate firms) demand high levels of information processing from investors. This study examines the ability of financial institutions to exploit pricing delays in conglomerate firms in an attempt to determine whether...

In this study, we investigate the significance of supply-chain relationships for institutional investors. We find that supply-chain relationships are an important determinant of institutional ownership – an institution that owns a customer firm is five times more likely than other institutions...

Extant research documents the valuation effects of credit rating change on the stock price. This study extends the research by examining the information transfer effects of customer credit rating downgrades on supplier firms. We find that supplier firms experience negative abnormal returns...

We explore insider trading at multinational firms and find multinational firm insiders make larger trades followed by larger abnormal returns relative to those at domestic firms. Multinational firm insider trading profits are concentrated among top-level insiders (CEO, President and Chairman),...