Short-term Institutions Research Articles

Short-term Trading and Stock Mispricing

This paper examines the influence of short-term trading on stock mispricing. Using a mispricing index proposed by Stambaugh, Yu, Yuan (2012, 2015) as a proxy for stock mispricing, This paper investigates how sensitive quarterly short-term institutional trading is to changes in the level of stock mispricing. This paper’s main finding is that trading by short-term institutions is negatively associated with the change-of-stock mispricing index, especially when stock liquidity is high. This paper supports the theoretical view of Cespa, Vives (2015), in which short-term trading can improve price informativeness when liquidity trading is persistent. Also, this research contributes to a better understanding of the interplay between short-term trading and stock mispricing, offering insights into its role in enhancing price efficiency and market dynamics.

Institutional investor horizons, information environment, and firm financing decisions

We provide evidence that the investment horizons of institutional shareholders affect firms’ financing decisions. We find that short-term institutional ownership positively affects firms’ likelihood of equity relative to debt issues, the size of equity issues, and the likelihood of long-term relative to short-term debt issues. Firms held more by short-term institutions have lower financial leverage and longer debt maturities. These results suggest that short-horizon institutions, backed by buy-side research, improve the transparency of the information environment, which allows firms to issue more information-sensitive securities. Our findings suggest that institutional investor horizons influence firms’ financing decisions by shaping their information environment.

Are All Short-Term Institutional Investors Informed?

We examine whether being a hedge fund has any differential effect on the previously documented empirical relation between investment horizon and informativeness of institutional investors’ trades. We find that the positive and significant relation between short-term institutional demand and future stock returns exists only among hedge funds, while such relation does not exist for non–hedge fund institutions with short investment horizons. We also provide evidence that our results are not driven by (false) presumptions that hedge funds represent the majority of short-term institutional investors or that hedge fund demand constitute the lion’s share of the short-term institutional demand.

Malignant Peripheral Nerve Sheath Scalp Tumor: A Short-Term Institutional Experience with Literature Review.

Malignant peripheral nerve sheath tumor (MPNST) of the scalp is rare. These lesions are associated with neurofibromatosis type 1 (NF1), but patients had been reported without NF1 also. We tried to analyze the difference between the clinical course and outcome of the patient with MPNST having stigmata of NF1 and without it. We included five patients treated over 3 years between July 2018 and July 2021 with diffuse scalp MPNST. Two of these five patients with MPNST of the scalp had neurocutaneous stigmata of NF1. Three were female and two males with an average age of 38.40 ± 18.48 years-the youngest with NF1 being a 19-year-old female. We found dull aching pain as the most typical complaint in all patients and a repeated episode of generalized seizure in one patient. In these cases, two patients with NF1 have highly vascular tumors and attained large sizes greater than 30 cm. These two cases required preoperative digital subtraction angiography (DSA) and embolization with n-butyl acrylate. Total excision of the tumor was done in all patients with radiotherapy. Metastases within 1 year were noted in two patients with NF1, and one of these two succumbed to her illness. The rest of the three patients without NF1 are under follow-up with no evidence of disease with a maximum follow-up of 2 years. Large MPNST (size > 20 cm) are rare and reported to have been associated with and without NF1. Patients with scalp MPNST with NF1 can achieve larger size with fast progression of tumor size and higher chances of recurrence and metastases.

Do government policies drive institutional preferences on green investment? Evidence from China.

Through the introduction of green finance policies, governments hope to improve the guiding role of institutional investors in green investment and provide financial support for green enterprises. Using the data in China, the difference-in-difference (DID) analysis explores whether the implementation of policies could change institutional investors’ attitude to environmental factors when making investment decisions. Considering the effect of investment horizons, we find that long-term institutional investors have shown symmetric preferences on green investment, while short-term institutions are more affected by green finance policies. Additionally, the mechanism analysis shows that green finance policies can influence the green investment of institutional investors not only by affecting stock price returns but also by increasing the innovation capabilities of green companies and thus improving corporate performance. Besides, heterogeneity and moderating effect analyses find that green finance policies can achieve better policy effects when financial institutions invest in non-state-owned enterprises, enterprises with higher quality of information disclosure and poor external supervision. The finding would extend the studies of green investment in emerging markets and present new evidence about the policy effect on institutions’ preferences for green investment.

Are All Short-Term Institutional Investors Informed?

Are All Short-Term Institutional Investors Informed?

Telemedicine in elderly care during the Covid-19 Pandemic: experience report

Introduction: Telemedicine has been progressively applied and accepted, especially in the current context, the new Coronavirus pandemic, with an overload on the health system and the need for social isolation. Objective: To report the experience of global geriatric assessment practice by medical students through teleconsultations. Experience report: Teleconsultations were carried out by medical students in which instruments were applied for the global geriatric assessment of a 72-year-old woman from a short-term institution. Results: It was identified that the patient was independent to perform activities of daily living, however, she had uncontrolled blood pressure, depressed mood and demonstrated incredibility to the vaccination. The experience proved to be beneficial for students, due to the geriatric practice, and for the elderly woman, who received guidance to meet health demands and ensure her overall well-being. Conclusion: Telemedicine is a promising tool to ensure comprehensive care for elderly patients in a context of social isolation. Teleconsultations were important to highlight the advantages and obstacles of this type of care, which still requires overcoming complex structural problems for its effective application, such as the need for investment in equal access to quality internet and training of health professionals and the elderly in management of digital media.

The Influence of Long-Term and Short-Term Institutional Investors on Complicated Mispricing of Stocks

Taking Chinese listed companies from 2009 to 2017 as the research objects, this paper aims at exploring the heterogeneous effect of short-term and long-term institutional investors on stock mispricing. The empirical study finds that long-term institutional investors have an inhibiting effect on stock mispricing, while short-term institutional investors have an opposite effect. When the company information opacity is high, long-term institutional investors have a more obvious inhibiting effect on stock mispricing while short-term institutional investors have a more obvious promoting effect on stock mispricing. When the attention of analysts is enhanced, long-term institutional investors further restrain the stock mispricing while short-term institutional investors further promote the stock mispricing.

Short-term institutions’ information advantage and overvaluation

Prior literature has documented that institutions which trade more frequently are better able to forecast future returns and have an informational advantage. This study examines a proximate explanation for the differences in performance based on institutions’ investment horizon – short-term institutions are better informed because they are better able to identify overvalued stocks that are short-sale constrained and overvalued in the context of Miller’s (1977) overvaluation hypothesis. Analysis is conducted on 6330 unique firms from 1996 to 2014 using the calendar-time portfolio approach where abnormal returns are estimated from the Fama-French-Carhart four-factor regression model. The results provide evidence that stocks which are extremely overvalued due to short-sale constraints have the greatest decline in short-term institutional ownership, consistent with the notion that short-term institutions are able to correctly assess the components for stock overvaluation.

Determining Expected Research Skills of Medical Students on Graduation: a Systematic Review.

Global interest in research skills in undergraduate medical education is growing. There is no consensus regarding expected research skills of medical students on graduation. We conducted a systematic review to determine the aims and intended learning outcomes (ILOs) of mandatory research components of undergraduate medical curricula incorporating the teaching, assessment, and evaluation methods of these programs. Using the PRISMA protocol, MEDLINE and ERIC databases were searched with keywords related to "medical student research programs" for relevant articles published up until February 2020. Thematic analysis was conducted according to student experience/reactions, mentoring/career development, and knowledge/skill development. Of 4880 citations, 41 studies from 30 institutions met the inclusion criteria. Programs were project-based in 24 (80%) and coursework only-based in 6 (20%). Program aims/ILOs were stated in 24 programs (80%). Twenty-seven different aims/ILOs were identified: 19 focused on knowledge/skill development, 4 on experience/reactions, and 4 on mentoring/career development. Project-based programs aimed to provide an in-depth research experience, foster/increase research skills, and critically appraise scientific literature. Coursework-based programs aimed to foster/apply analytical skills for decision-making in healthcare and critically appraise scientific literature. Reporting of interventions was often incomplete, short term, and single institution. There was poor alignment between aims, teaching, assessment, and evaluation methods in most. The diversity of teaching programs highlights challenges in defining core competencies in research skills for medical graduates. Incomplete reporting limits the evidence for effective research skills education; we recommend those designing and reporting educational interventions adopt recognized educational reporting criteria when describing their findings. Whether students learn by "doing", "proposing to do", or "critiquing", good curriculum design requires constructive alignment between teaching, assessment, and evaluation methods, aims, and outcomes. Peer-reviewed publications and presentations only evaluate one aspect of the student research experience.

A LOAN PORTFOLIO EVALUATION OF DISTRICT CENTRAL COOPERATIVE BANKS: A CASE STUDY OF UTTAR PRADESH

Indian Cooperative Banks are the world largest credit institution which serve the credit need of more than 120 million farmers(Rangarajan,1972). These cooperative banks are established to serve for the welfare of rural people and not for the profit maximization. Indian cooperative credit These banks provide credit under various areas such as, agriculture, lives stock, milk, self-employment, setting up small-scale units, personal finance etc. Indian Agricultural Cooperative credit institution are broadly categories in to two types, short term and long term agricultural credit institution. The short term agricultural credit institution have three tire federal structure, at the apex level: State Cooperative Banks, District Central Cooperative Banks at district level and Primary Agricultural Credit Societies, at root level. The District Central Cooperatives Banks(DCCBs) act as intermediary, it provide short and medium term loan to the rural sector. There are total 364 DCCBs operating in country (RBI report, 2017-18), out of which 50 DCCBs operating in Uttar Pradesh (NAFSCOB, 2017-18). The present study evaluate the agricultural and non-agricultural loan distribute by DCCBs of UP for the period of 2013-14 to 2016-17. For the purpose of the study, District Central Cooperative Banks (DCCBs) of UP were divided into 18 zone as per their administrative classification. The study revealed that there is volatility among the zone and some zone performed well in development of rural areas. KEYWORDS: Cooperative Banks, rural people, agriculture, lives stock, milk, self-employment

Till death do us part: the effect of marital status on health care utilization and costs at end-of-life. A register study on all colorectal cancer decedents in Norway between 2009 and 2013

BackgroundEconomic analyses of end-of-life care often focus on single aspects of care in selected cohorts leading to limited knowledge on the total level of care required to patients at their end-of-life. We aim at describing the living situation and full range of health care provided to patients at their end-of-life, including how informal care affects formal health care provision, using the case of colorectal cancer.MethodsAll colorectal cancer decedents between 2009 and 2013 in Norway (n = 7695) were linked to six national registers. The registers included information on decedents’ living situation (days at home, in short- or long-term institution or in the hospital), their total health care utilization and costs in the secondary, primary and home- and community-based care setting. The effect of informal care was assessed through marital status (never married, currently married, or previously married) using regression analyses (negative binominal, two-part models and generalized linear models), controlling for age, gender, comorbidities, education, income, time since diagnosis and year of death.ResultsThe average patient spent four months at home, while he or she spent 27 days in long-term institutions, 16 days in short-term institutions, and 21 days in the hospital. Of the total costs (~NOK 400,000), 58, 3 and 39% were from secondary carers (hospitals), primary carers (general practitioners and emergency rooms) and home- and community-based carers (home care and nursing homes), respectively. Compared to the never married, married patients spent 30 more days at home and utilized less home- and community-based care, but more health care services at the secondary and primary health care level. Their total healthcare costs were significantly lower (−NOK 65,621) than the never married. We found similar, but weaker, patterns for those who had been married previously.ConclusionEnd-of-life care is primarily provided in the secondary and home-and community-based care level, and informal caregivers have a substantial influence on formal end-of-life care provision. Excluding aspects of care such as home and community-based care or informal care in economic analyses of end-of-life care provides a biased picture of the total resources required, and might lead to inefficient resource allocations.

Short-Term Institutions’ Information Advantage and Overvaluation

Prior literature has documented that institutions which trade more frequently are better able to forecast future returns and have an informational advantage. This study examines a proximate explanation for the differences in performance based on institutions’ investment horizon – short-term institutions are better informed because they are better able to identify overvalued stocks that are short-sale constrained and overvalued in the context of Miller’s (1977) overvaluation hypothesis. Analysis is conducted on 6,330 unique firms from 1996 to 2014 using the calendar-time portfolio approach where abnormal returns are estimated from the Fama-French-Carhart four-factor regression model. The results provide evidence that stocks which are extremely overvalued due to short-sale constraints have the greatest decline in short-term institutional ownership, consistent with the notion that short-term institutions are able to correctly assess the components for stock overvaluation.

Who Reacts to News?

We show that the positive relation between firm-level cash-flow news and institutional ownership documented by [Cohen et al., Journal of Financial Economics 66, 409–462.] is mostly driven by short-horizon investors. Short-term institutions trade to incorporate cash-flow related information into prices and potentially reduce under-reaction to cash-flow news. In contrast, long-term institutions are more sensitive to discount-rate news, consistent with the idea that their strategy is to realize the long-term expected returns and that they care more about changes in their opportunity set. Our results support the premise that short- and long-horizon institutions are potentially trading with each other based on their opposing preferences for news.

How Do Macroeconomic Fundamentals Affect Sovereign Bond Yields? New Evidence from European Forecasts

Macroeconomic fundamentals impact the long-term insolvency problem of a country. This article empirically assesses the role played by both macroeconomic and fiscal fundamentals, proxied by a set of European Commission’s forecasts, in affecting sovereign bond yields. We look at a large panel of 25 European countries between 1992 and 2015. By means panel and time-series approaches, we find that lower short-term interest rates and better fiscal institutions tend to lower bond yields. The better the economic and fiscal outlooks going forward, the lower the yields demanded in international markets. Timing also matters: investors seem to pay more attention to forecasts the shorter the forecast horizon, and they started carrying more weight since the Global Financial Crisis. Finally, the impact of yields’ determinants is different across countries, being more prominent in those characterized by economic hardship conditions (Greece, Ireland, Spain, and Portugal). (JEL codes: C23, E44, H68)

Short-term institutional investors and agency costs of debt

We conjecture that the presence of short-term institutional investors exacerbates agency conflicts between shareholders and creditors because short-term institutions might force firm managers to take myopic actions. Using the data on private debt to U.S. firms, we find that the investment horizons of institutional investors are negatively correlated with the number of loan covenants and loan spreads. We also document that short-term (long-term) institutional ownership is positively (negatively) correlated with the number of covenants, and that banks charge higher spreads on loans issued to firms with more short-term institutional ownership. These findings are consistent with our conjecture.

Which Corporate Social Deeds Matter? Evidence From the Motivated Institutional Ownership

Among the 41 items from five corporate social responsibility dimensions: community, diversity, employee relations, environment, and human rights, we examine which corporate social deeds influence institutional investors’ motivated equity ownership most in the U.S. We find that enforcing gay-friendly policies significantly increases the motivated institutional ownership while fairly treating the unionized workforce reduces the motivated institutional ownership after we take the endogeneity issue into consideration. Our further analysis suggests that firms’ innovative activities may contribute to this result. In addition, our finding suggests that independent institutional investors avoid corporate social deeds decreasing a firm’s profitability more than grey institutional investors. Furthermore, we find that failing to protect the environment and having bad relations with indigenous peoples attract more diversified and short-term institutions than dedicated and long-term institutions. Finally, stocks with a higher CSR-determined motivated institutional ownership earn a positive risk-adjusted return of 0.21% per month, suggesting that firms can adjust their corporate social deeds to attract more motivated institutional ownership and increase the demand for their stocks. Collectively, our evidence suggests that economic considerations outweigh social values in driving institutional investors’ preferences for corporate social responsibility activities.

Feedback Regulation of HMG‐CoA Reductase in Livers of Mice

IntroductionHMG‐CoA reductase is a membrane protein of the endoplasmic reticulum (ER) that catalyzes the reduction of HMG‐CoA to mevalonate, a rate‐limiting step in the synthesis of cholesterol and nonsterol isoprenoids. Sterol and nonsterol isoprenoids exert stringent feedback control on HMGCR through multiple mechanisms. This ensures constant synthesis of essential nonsterol isoprenoids, while avoiding toxic overaccumulation of cholesterol. One of these mechanisms involves sterol‐induced ubiquitination of HMGCR, which marks the enzyme for degradation from ER membranes that is augmented by nonsterol isoprenoids. In this study, we examine the contribution of this sterol‐accelerated ubiquitination/degradation to overall regulation of HMGCR in the livers of mice.MethodsForty mice, including 20 wild‐type (WT) and 20 knock‐in (Ki) mice that express ubiquitination‐resistant HMGCR, were fed diets containing only chow, or chow supplemented with 0.1%, 0.3%, or 1% cholesterol. After five days of feeding, livers were harvested for measurements of cholesterol and triglycerides, immunoblot analysis of six proteins, and qRTPCR of 26 genes related to cholesterol, nonsterol isoprenoid, and fatty acid synthesis.ResultsNormalization of mRNA levels to protein levels indicates that HMGCR Ki mouse livers contain a higher level of HMGCR protein despite mRNA downregulation. Protein and gene expression of SREBP‐2 and its target genes, which contribute to cholesterol synthesis, decreased as expected with increased dietary cholesterol. Conversely, protein and gene expression of SREBP‐1 and its target genes increased, likely due to SREBP‐1c predominance toward fatty acid synthesis, which prevents cholesterol accumulation.ConclusionThe increase in HMGCR protein relative to mRNA suggests that significant posttranscriptional regulation exists in the form of impaired degradation. Furthermore, these normalized values indicate that accumulation of protein is primarily due to impaired degradation at lower cholesterol levels (chow, 0.1%); however, at high cholesterol levels (0.3%, 1%), a greater degree of transcriptional control from sterol‐mediated inhibition of SREBP‐2 regulates HMGCR due to negative feedback. This study demonstrates the role of degradative control on inhibition of HMGCR and may assist in reducing HMGCR accumulation during statin therapy.Support or Funding InformationNIH grants HL020948, GM112409, Ruth L. Kirschstein National Research Service Award (NRSA) Short‐Term Institutional Research Training Grant (T‐35)

Investment Horizons, Systematic Risk, and Managerial Skills of Institutional Investors

We examine the relationship between portfolio risk and equity returns over different investment horizons of institutional investors. Compared to long-term institutions, portfolios held by short-term institutions exhibit higher factor loadings in market, size, and momentum. In particular, they tend to hold smaller stocks and momentum stocks in the bull market. They also tend to trade for stocks with lower profitability in the bull market. Nevertheless, we find that systematic risk can account for the overall superior performance in the buy and sell portfolios of short-term institutions. Our results suggest that while short-term institutions exhibit market timing ability, they do not always generate abnormal returns after controlling for systematic risk.

The Performance of Short-Term Institutional Trades

Using a database of daily institutional trades, we document that a majority of short-term institutional trades lose money. In aggregate, over 23% of round-trip trades are held for less than 3 months, and the returns on these trades average -3.91% (nonannualized). These losses are pervasive across all types of stocks, with the lowest returns occurring in small stocks, value stocks, and low-momentum stocks. Short-term trades lose more in more volatile markets. Across funds, the worst short-term returns accrue to funds that do the most trading, and there is no evidence of persistent skill or disposition effect in short-term institutional trades.