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http://dx.doi.org/10.13088/jiis.2014.20.1.103

Intellectual Reaction Differences among Market Participants to a Company's Information Disclosure and Trading Behaviors on IPO KOSDAQ  

Tsoy, Anzhela (Graduate School of Management, Incheon National University)
Lee, Ki-Dong (Graduate School of Management, Incheon National University)
Publication Information
Journal of Intelligence and Information Systems / v.20, no.1, 2014 , pp. 103-119 More about this Journal
Abstract
In this paper, we investigate intellectual reaction differences among market participants to various corporate information announcements and the main information prompting investors to trade. Our research is based on IPO companies listed on the KOSDAQ exchange from January 2000 to September 2012 and concentrates on three information disclosures - bonus issue, seasoned equity offer, and new investment in facilities announcements. We find that intellectual market participants react positively to bonus issues and seasoned equity offers, but negatively to new investment announcements. Market trading volume increases before the positive events and all cgroups actively buy shares during these periods. For the negative events, only institution participants show active selling. Overall, institutions act as momentum traders, and individuals and foreigners as contrarian traders. We also discuss the implications of this study.
Keywords
IPO;
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Times Cited By KSCI : 4  (Citation Analysis)
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