Footnote:
In: Alldredge, D.M., 2019. Institutional trading, investor sentiment, and lottery‐like stock preferences. Financial Review
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 19, 2018 erstellt
Description:
This paper explores the time-varying institutional investor preference for lottery-like stocks. On average, institutional investor holdings reflect an aversion to lottery-like stocks. However, I find that an institutions' aversion to lottery-like stocks is reduced when investor sentiment is low. Moreover, I find that during low-sentiment periods institutional investors have abnormally high trading profits in more positively skewed stocks. These results suggest that institutions reduce their aversion towards lottery-like stocks during low-sentiment periods to profitably trade in lottery-like stocks