Do individual investors pay attention to the information acquisition activities of institutional investors?

Abstract

This study investigates individual investors' responses to institutional investors' information acquisition activities. We examine the association between institutional investors' site visits and individual investors' posts on the online message board. We find that the total abnormal posts of individual investors significantly increase after institutional investors' site visits. Additional tests show that individual investors will pay more attention when institutional investors visit firms with low profitability, high earnings management, low manager sentiment, and poor environmental, social, and governance (ESG) performance.