%0 Journal Article %J Journal of Financial Economics %D 1992 %T The Impact of Institutional Trading on Stock Prices %A Josef Lakonishok %A Andrei Shleifer %A Robert W. Vishny %X

This paper uses new data on the holdings of 769 tax-exempt (predominantly pension) funds. to evaluate the potential effect of their trading on stock prices. We address two aspects of trading by these money managers: herding, which refers to buying (selling) simultaneously the same stocks as other managers buy (sell), and positive-feedback trading, which refers to buying past winners and selling past losers. These two aspects of trading are commonly a part of the argument that institutions destabilize stock prices. The evidence suggests that pension managers do not strongly pursue these potentially destabilizing practices.

%B Journal of Financial Economics %V 32 %G eng %N 1