Foreign Portfolio Investors Before and during a Crisis [E-Book] / Woochan Kim and Shang-Jin Wei
Kim, Woochan.
Wei, Shang-Jin.
Paris : OECD Publishing, 1999
30 p. ; 21 x 29.7cm.
englisch
10.1787/522265260065
OECD Economics Department Working Papers ; 210
Economics
Full Text
Different categories of foreign portfolio investors in Korea have differences as well as similarities in their trading behavior before and during the currency crisis. First, non-resident institutional investors are always positive feedback traders, whereas resident investors were negative feedback (contrarian) traders before the crisis but switch to be positive feedback traders during the crisis. Second, individual investors herd significantly more than institutional investors. Non-resident (institutional as well individual) investors herd significantly more than their resident counterparts. Third, differences in the Western and Korean news coverage are correlated with differences in net selling by non-resident investors relative to resident investors ...