Political uncertainty and institutional herding

IF 7.2 1区经济学 Q1 BUSINESS, FINANCE

Journal of Corporate Finance Pub Date : 2024-07-23 DOI:10.1016/j.jcorpfin.2024.102627

Konstantinos Gavriilidis , Vasileios Kallinterakis , Maurizio Montone

引用次数: 0

Abstract

Political uncertainty represents a key determinant of corporate investment decisions. In this paper, we study the relation between political uncertainty and investment from the perspective of institutional investors. Using U.S. equity holdings data from 13F filings, we find that institutional investors herd during politically uncertain times. This trading behavior is stronger when U.S. presidents are unpopular, due to their proclivity for controversial policies, and among riskier stocks. We also find that this mechanism, despite generating some excess trading, helps incorporate a risk premium into stock prices. Overall, the findings unveil a new channel through which political uncertainty affects financial markets.

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政治不确定性和机构羊群效应

政治不确定性是企业投资决策的一个关键决定因素。本文从机构投资者的角度研究了政治不确定性与投资之间的关系。利用 13F 文件中的美国股票持有数据，我们发现机构投资者在政治不确定时期会群起而攻之。当美国总统不受欢迎时，这种交易行为会更强烈，因为他们倾向于采取有争议的政策，而且是在风险较高的股票中。我们还发现，尽管这种机制会产生一些过度交易，但有助于将风险溢价纳入股票价格。总之，研究结果揭示了政治不确定性影响金融市场的新渠道。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Corporate Finance BUSINESS, FINANCE-

CiteScore

11.80

自引率

3.30%

发文量

期刊介绍： The Journal of Corporate Finance aims to publish high quality, original manuscripts that analyze issues related to corporate finance. Contributions can be of a theoretical, empirical, or clinical nature. Topical areas of interest include, but are not limited to: financial structure, payout policies, corporate restructuring, financial contracts, corporate governance arrangements, the economics of organizations, the influence of legal structures, and international financial management. Papers that apply asset pricing and microstructure analysis to corporate finance issues are also welcome.