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Title The Performance of Institutional Investor Trades Across the Supply Chain
Publication Date
Degree Level doctoral
University/Publisher University of Tennessee – Knoxville
Abstract In this paper I investigate institutional ownership and trading across the supply chain. I find that institutions are more likely to own stock in a supplier firm, if they own stock in an economically linked customer firm. Institutions with stock in a pair of customer-supplier linked firms (i.e. joint owners) experience abnormal trading profits in supplier stocks. The magnitude of trading profits increases when institutions own a larger stake in the customer and when the supplier relies upon a concentrated customer base for sales revenue. Furthermore, I document that joint owner trading predicts unexpected earnings news, consistent with these institutional investors extracting material information from economic relationships. The results show that the supply chain is a rich source of information through which some skilled traders can forecast firm fundamentals and realize trading profits.
Subjects/Keywords Institutional Trading; Supply Chain; Informed Trading; Finance and Financial Management
Country of Publication us
Format application/pdf
Record ID oai:trace.tennessee.edu:utk_graddiss-4745
Repository utk-diss
Date Retrieved
Date Indexed 2019-01-07

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