Trading Performance of Individual, Institutional, and Foreign Investors: Evidence from the Stock Exchange of Thailand

38 Pages Posted: 25 Aug 2008 Last revised: 30 Jan 2009

See all articles by Nareerat Taechapiroontong

Nareerat Taechapiroontong

Mahidol University - College of Management

Prapoporn Suecharoenkit

affiliation not provided to SSRN

Date Written: August 1, 2008

Abstract

This paper examines whether domestic investors outperform foreign investors by using transaction data from Stock Exchange of Thailand during 1999 to 2004. We find that foreign investors, in general, trade at worse price than domestic investors who have more information advantage. However, foreign investors perform best when buying mid-cap and large size stocks during the bull market which may be due to more experience and better access to research. Individual investors tend to follow contrarian trading strategy which leads them to act as the liquidity provider to institutions. The intense of trade imbalance can predict future returns. The intense of individuals selling occurring at peak price influences future negative return. The intense buying of foreign and institutional investors is followed by price increases.

Keywords: foreign, domestic, institutional, individual, bull and bear market

JEL Classification: G12, G14, G15

Suggested Citation

Taechapiroontong, Nareerat and Suecharoenkit, Prapoporn, Trading Performance of Individual, Institutional, and Foreign Investors: Evidence from the Stock Exchange of Thailand (August 1, 2008). 21st Australasian Finance and Banking Conference 2008 Paper. Available at SSRN: https://ssrn.com/abstract=1254044 or http://dx.doi.org/10.2139/ssrn.1254044

Nareerat Taechapiroontong (Contact Author)

Mahidol University - College of Management ( email )

College of Management Mahidol University
69 Vipawadee Rangsit Road
Phayathai, Bangkok 10400
Thailand
+66 22062000 (Phone)
+66 22062090 (Fax)

Prapoporn Suecharoenkit

affiliation not provided to SSRN ( email )

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