Alldredge, Dallin
[Verfasser:in]
;
Caglayan, Mustafa Onur
[Sonstige Person, Familie und Körperschaft];
Celiker, Umut
[Sonstige Person, Familie und Körperschaft]
How Do Investors Trade R&D-intensive Stocks? Evidence from Hedge Funds and Other Institutional Investors
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 16, 2020 erstellt
Beschreibung:
We examine how institutional investors trade stocks with high research and development (R&D) expenses and investigate whether they can detect value-relevant R&D. We document significant differences between hedge funds and other institutional investors in terms of their trading in high R&D stocks. We find that hedge funds (other institutional investors) invest more (less) in high R&D stocks compared to low R&D stocks. Moreover, while hedge funds have strong stock-picking ability in high R&D stocks, other institutional investors do not show any evidence of stock-picking ability. Our findings suggest that hedge funds have differential skillset to better identify the value-relevant R&D