How Informed are Actively Trading Institutional Investors? Evidence from Their Trading Behavior Before a Break in a String of Consecutive Earnings Increases

By Bin Ke, K. Petroni. 2004

300 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/42d513c6350e0600d0a6ccdaf42acbb59e5e30e1

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Finance

Citations in the corpus

Investor Trading and the Post Earnings Announcement Drift (2011, unknown): “Similarly, Ke and Ramalingegowda (2005) find that quarterly changes in transient institutional ownership in the direction of RW earnings surprise (e.”
Individual investors and financial disclosure (2013, background): “Krinsky 2000; D'Souza, Ramesh, and Shen 2010) who have lower information processing costs than other market participants, and documents that institutions develop and trade on their own private information (e.g., Ke and Petroni 2004; Bushee and Goodman 2007; Ali et al. 2008).”
Institutional Investors and Equity Returns: Are Short-Term Institutions Better Informed? (2009, background): “2 Recent accounting literature (Ke and Petroni (2004)) provides evidence that transient institutional investors can predict a break in a string of consecutive quarterly earnings increase, suggesting that short-term institutions are informed.”
Financial Reporting Opacity and Informed Trading by International Institutional Investors (2012, background): “Ke and Petroni (2004) finds an association between changes in aggregate institutional ownership and breaks in strings of quarterly earnings growth.”
The Effect of Institutional Ownership on Firm Transparency and Information Production (2015, unknown): “In turn, these factors could induce transient investors to gather private information because it facilitates their ability to make profitable trades, especially prior to Regulation Fair Disclosure (Reg FD) (Ke and Petroni, 2004; Ke et al., 2008).”
Which Institutional Investors Trade Based on Private Information About Earnings and Returns (2007, background): “Ke and Petroni [2004] find that transient investors (i.e., institutions that own small stakes and trade frequently) sell firms in the two quarters prior to a break in a sequence of positive earnings increases. Ke and Ramalingegowda [2005] find that transient institutions possess private information ”
Local institutional investors, information asymmetries, and equity returns (2010, background): “19 Ke and Petroni (2004) show that transient institutional investors”
The Bright Side of Managerial Over-Optimism (2016, background): “…issuance, Jegadeesh and Titman, 1993), number of outside 22 Previous papers have examined the consequences of strings of earnings increases or non-decreases (e.g. Barth et al., 1999; McNichols and Kasznik, 2002; Miller, 2002; Ke and Petroni, 2004; Ghosh et al., 2005; Koonce and Lipe, 2010).”
Marching to the Beat of Different Drummers: The Influence of Institutional Owners on Competitive Actions (2010, methodology): “These classifications have been used in the accounting literature (Abarbanell, Bushee, & Raedy, 2003; Bushee & Noe, 2000; Ke & Petroni, 2004) but are only recently being applied in the management literature (Higgins & Gulati, 2006).”
Ownership as a Form of Corporate Governance (2010, unknown): “These organizations combine with agent owners’ own professional staff to increase monitoring effectiveness (Ke and Petroni, 2004).”
Foreign Institutional Ownership and Stock Market Liquidity: Evidence from Indonesia (2009, unknown): “Many studies show that institutional trading is more likely information-driven (e.g. Ali et al., 2004; Pinnuck, 2004; Ke and Petroni, 2004; Bushee and Goodman, 2007), and large institutional ownership increases the degree of information asymmetry (e.g. Dennis and Weston, 2001; Agarwal, 2007; Rubin,…”
From Finance to Marketing: The Impact of Financial Leverage on Customer Satisfaction (2015, background): “For example, Ke and Petroni (2004) show that institutional investors who trade actively are able From Finance to Marketing / 35 to avoid negative consequences by using information from managers as well as accounting statements to predict breaks in the string of quarterly earnings increases.”