Investors' Horizons and the Amplification of Market Shocks

344 citations recorded by the source corpus.

How researchers see this paper

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Institutional Trading and Stock Resiliency: Evidence from the 2007-2009 Financial Crisis (2013, neutral): “Cella, Ellul, and Giannetti (2011) show that investors with short holding periods amplify the effects of market-wide shocks on stock prices.”
Institutional Investor Stability and Crash Risk: Monitoring versus Short-Termism? (2013, background): “Cella et al. (2011) provide evidence showing that investors with short horizons amplify the effects of market-wide negative shocks by demanding liquidity at times when other potential buyers’ capital is scarce.”
Investor Rewards to Climate Responsibility: Stock-Price Responses to the Opposite Shocks of the 2016 and 2020 U.S. Elections (2021, unknown): “Cella et al. (2013) show that stocks held by more long-term investors are more resilient to market downturns. Gaspar et al. (2013) find that shareholder investment horizons influence payout policy choices.”