Finance and Financial Management Commons^™

Institutional Investors And Adrs: Three Essays, Deqing Li

Theses and Dissertations in Business Administration

The three essays which constitute this research study the effects of institutional investors in the ADRs' market.

Essay one studies the herding and feedback trading by institutional investors in the ADRs market. The empirical results find that there is a strong positive relation between changes in the ADRs institutional ownership and returns measured over the same period—the herding year (t = month 0 to 11). The ADR portfolios experiencing the largest increase in institutional ownership outperform those experiencing the largest decrease by 15.33 percent per year over the herding year. In addition, return continuation exists for the two years following …