The consequences of non‐trading institutional investors
研究发现机构投资者平均有五分之一股票长期不交易，这种不交易行为预示其未来业绩较差，且主要由对价格波动明显的股票卖出倾向和近因偏差驱动。
Abstract We document that institutional investors do not trade a single share, on average, in one of five stocks in their portfolio for an extended period. Investors with high inaction are likely to underperform in the future. Our results show a similar underperformance for stocks with a high non‐trading level of institutional investors. We investigate several behavioral biases as potential drivers of the non‐trades and find no evidence of distraction, overconfidence, and disposition effects. Institutional investors’ tendency to sell stocks with salient price movements and recency bias best explains their inactions. Overall, the non‐trading behavior of institutional investors serves as a unique predictor for their future performance and potential behavioral biases are driving this predictability.