Institutional trading and information processing: Evidence from complicated firms and easy‐to‐analyze firms
研究了机构投资者在多元化公司和单一公司中的交易回报差异，发现机构在多元化公司股票交易中回报较低，且擅长信息处理的机构更专注于易分析的公司。
Abstract In this article, I examine institutional trading within two groups of firms with different demands on investor information processing: conglomerate firms and stand‐alone firms. On average, institutional trading in conglomerate firm stocks yields significantly lower returns than institutional trading in stand‐alone firm stocks. Inferior returns following institutional trading in conglomerate firm stocks persist across small and large firms. Moreover, financial institutions with a low concentration of conglomerate firms in their portfolios are more profitable in their trading. This study provides evidence that skilled institutional investors intentionally focus their information‐processing efforts on easy‐to‐analyze firms.