intensive investor

  • 详情 Informed Trading Volume and Asset Prices: The Role for Intensive Traders
    We examine intensive traders, those who contribute the most to daily volume, and provide new evidence of informational advantages. Using unique Chinese data on particularly active market participants, we demonstrate that intensive trading predicts returns, especially around value-relevant announcements. We also identify several plausible channels; these effects are pronounced for intensive traders who share a geographic location with the firms in which they trade and for stocks with low analyst coverage or small capitalizations. We also uncover novel advantages for intensive traders located near relevant corporate counterparties. Finally, our results suggest a likely important role for lower information acquisition costs.
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