TY  - JOUR
AU  - Kim,Woochan
AU  - Wei,Shang-Jin
TI  - Foreign Portfolio Investors Before and During a Crisis
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6968
PY  - 1999
Y2  - February 1999
UR  - http://www.nber.org/papers/w6968
L1  - http://www.nber.org/papers/w6968.pdf
N1  - Author contact info:
Woochan Kim
KDI School of Public Policy and Management
Chungrangri-Dong Dongdaemun-Ku
Seoul Korea 130-868
E-Mail: wc_kim@kdischool.ac.kr

Shang-Jin Wei
Graduate School of Business
Columbia University
Uris Hall 619
3022 Broadway
New York, NY 10027-6902
Tel: 212/854-9139
E-Mail: shangjin.wei@columbia.edu
M2  - featured in NBER digest on 1999-06-01
AB  - Different categories of foreign portfolio investors in Korea have differences as well as similarities in their trading behavior before and during a currency crisis.  First, non-resident institutional investors are always positive feedback traders, whereas resident investors were negative feedback (contrarian) traders before the crisis but switch to be positive feedback traders during the crisis.  Second, individual investors herd significantly more than institutional investors.  Non-resident (institutional as well as individual) investors herd significantly more than their resident counterparts.  Third, differences in the Western and Korean news coverage are correlated with differences in net selling by non-resident investors relative to resident investors.
ER  -