Do individual traders undermine firm valuation?
- 주제(키워드) Firm valuation , Individual trading weight , Noise trader risk
- 등재 SSCI, SCOPUS
- 발행기관 Elsevier Ltd
- 발행년도 2020
- 총서유형 Journal
- URI http://www.dcollection.net/handler/ewha/000000174732
- 본문언어 영어
- Published As http://dx.doi.org/10.1016/j.frl.2020.101567
초록/요약
Studies find that noise traders create unhedgeable risks, and individuals have long been suspected of making suboptimal and uninformed trading decisions. Recent arguments suggest using the individual trading weight to proxy for noise trader risk when pricing common and preferred stocks in emerging markets. We empirically corroborate that individual traders undermine the relative valuations of listed firms in South Korea. This result is robust to controlling for corporate governance, institutional monitoring efforts, firm size, accounting ratios, idiosyncratic volatility, liquidity measures, and endogeneity. © 2020 Elsevier Inc.
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