TY  - JOUR
AU  - Choe,Hyuk
AU  - Kho,Bong-Chan
AU  - Stulz,Rene M.
TI  - Do Domestic Investors Have an Edge? The Trading Experience of Foreign Investors in Korea
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10502
PY  - 2004
Y2  - May 2004
UR  - http://www.nber.org/papers/w10502
L1  - http://www.nber.org/papers/w10502.pdf
N1  - Author contact info:
Rene M. Stulz
The Ohio State University
Fisher College of Business
806A Fisher Hall
Columbus, OH 43210-1144
Tel: 614/292-1970
Fax: 614/292-2359
E-Mail: stulz_1@cob.osu.edu
AB  - We investigate whether domestic investors have an edge over foreign investors in trading domestic stocks.Using Korean data, we show that foreign money managers pay more than domestic money managers when they buy and receive less when they sell for medium and large trades. The sample average daily trade-weighted disadvantage of foreign money managers is of 21 basis points for purchases and 16 basis points for sales. There is also some evidence that domestic individual investors have an edge over foreign investors. The explanation for these results is that prices move more against foreign investors than against domestic investors before trades.
ER  -