Do domestic investors have an edge?
Subtitle: The trading experience of foreign investors in Korea
By: Hyuk Choe, Bong-Chan Kho, Rene M. Stulz.
Contributors: Kho, Bong-Chan, 1962-; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10502; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10502.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Stocks -- Korea (South); Capitalists and financiers -- Korea (South); Investments, Foreign -- Korea (South)
Description: "We investigate whether domestic investors have an edge over foreign investors in trading domestic stocks.Using Korean data, we show that foreign money managers pay more than domestic money managers when they buy and receive less when they sell for medium and large trades.  The sample average daily trade-weighted disadvantage of foreign money managers is of 21 basis points for purchases and 16 basis points for sales.  There is also some evidence that domestic individual investors have an edge over foreign investors.  The explanation for these results is that prices move more against foreign investors than against domestic investors before trades"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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Mode of access: World Wide Web.