Abstract:

This study examines the buy-sell asymmetry in feedback trading behavior among equity fund investors, with a specific focus on comparing retail and institutional investors. We analyze how this asymmetry in buying and selling decisions responds to market timing and selectivity. Our findings indicate that retail fund investors exhibit positive feedback trading, particularly through sell-side trading for market timing and a combination of buy- and sell-side trading for selectivity. In contrast, institutional fund investors show weak evidence of feedback trading and buy-sell asymmetry. Additionally, in bear markets, fund investors tend to base their trades more on fund selection performance rather than market timing, while in bull markets, they engage in feedback training focused on market timing. The study highlights the importance of understanding asymmetric buy- and sell-side decisions in influencing feedback trading strategies, as well as the difference in trading behaviors between retail and institutional investors.

Keywords:

Global economic shocks, national income, COVID-19 pandemic, economic stimulus package.

How to Cite:

Donghun Yoon. Global Economic Shocks and National Income in COVID-19 Pandemic. [ref]: vol.22.2024. available at: https://refpress.org/ref-vol22-a23/