Foreign Portfolio Investors Before and during a Crisis / Woochan Kim and Shang-Jin Wei

Format:

Book

Government document

Author/Creator:

Kim, Woochan.

Contributor:

Wei, Shang-Jin.

Series:

OECD Economics Department Working Papers, 18151973 ; no.210.

OECD Economics Department Working Papers, 18151973 ; no.210

Language:

English

Subjects (All):

Economics.

Local Subjects:

Economics.

Physical Description:

1 online resource (29 p. )

Place of Publication:

Paris : OECD Publishing, 1999.

Summary:

Different categories of foreign portfolio investors in Korea have differences as well as similarities in their trading behavior before and during the currency crisis. First, non-resident institutional investors are always positive feedback traders, whereas resident investors were negative feedback (contrarian) traders before the crisis but switch to be positive feedback traders during the crisis. Second, individual investors herd significantly more than institutional investors. Non-resident (institutional as well individual) investors herd significantly more than their resident counterparts. Third, differences in the Western and Korean news coverage are correlated with differences in net selling by non-resident investors relative to resident investors ...