This study examines the institutional investors' trading strategies to exploit the post-earnings announcement drift (PEAD) around earnings announcements in China. China's fund management industry is developing rapidly. Our findings suggest the possibility that institutional investors trade on...

We explore how institutional and individual investors respond to analyst recommendations. Using a unique account-level trading dataset from the China, we find that 1) institutions are significantly net buyers (net sellers) on “strong buy” and “buy” (“hold” and “sell”)...

To examine the impact of limited attention on post-earnings announcement drift (PEAD), this study introduces inattentive investors with limited attention to an overlapping generations model based on the psychological view that individuals' attention is limited. We find that PEAD is driven by...