Doctoral Dissertations
Date of Award
5-2015
Degree Type
Dissertation
Degree Name
Doctor of Philosophy
Major
Business Administration
Major Professor
Andy Puckett
Committee Members
Eric Kelley, Larry Fauver, Bruce Behn
Abstract
In this paper I investigate institutional ownership and trading across the supply chain. I find that institutions are more likely to own stock in a supplier firm, if they own stock in an economically linked customer firm. Institutions with stock in a pair of customer-supplier linked firms (i.e. joint owners) experience abnormal trading profits in supplier stocks. The magnitude of trading profits increases when institutions own a larger stake in the customer and when the supplier relies upon a concentrated customer base for sales revenue. Furthermore, I document that joint owner trading predicts unexpected earnings news, consistent with these institutional investors extracting material information from economic relationships. The results show that the supply chain is a rich source of information through which some skilled traders can forecast firm fundamentals and realize trading profits.
Recommended Citation
Alldredge, Dallin Max, "The Performance of Institutional Investor Trades Across the Supply Chain. " PhD diss., University of Tennessee, 2015.
https://trace.tennessee.edu/utk_graddiss/3319