Abstract
This paper explores the effects of institutional investorsf trading intensity and stockfs institutional ownership on the institutional trading behavior. Specifically, this paper attempts to examine whether institutional investorsf momentum behavior will be affected by their trading intensity and the institutional ownership of their stockholdings. Empirical results show that institutional investors tend to exhibit momentum trading behavior when they are buying stocks. However, they tend to be feedback traders while they are selling stocks. This, thus, results in an asymmetric momentum (feedback) trading behavior. This phenomenon is more pronounced for the mutual fund managers. Furthermore, we also find that stockfs institutional ownership also plays an important role affecting institutional investorsf momentum trading behavior. In specific, institutional investors tend to exhibit more significant momentum (feedback) trading behavior on stocks with higher (lower) institutional ownership. This asymmetric trading behavior still exists after controlling factors such as firm size and mutual fundsf types. This, in turn, indicates that the above finding regarding institutional investorsf asymmetric trading behavior does not result from either firm size or particular institutional investor type. Key words: institutional investors, trading intensity, momentum trading, feedback trading
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