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@article{ART002381097},
author={Min-Cheol Woo and Kim, Jee-Hyun},
title={An Empirical Analysis of the Insurance Investors’ Trading and Its Effects on Stock Markets},
journal={Journal of Insurance and Finance},
issn={2384-3209},
year={2018},
volume={29},
number={3},
pages={3-44},
doi={10.23842/jif.2018.29.3.001}

TY - JOUR
AU - Min-Cheol Woo
AU - Kim, Jee-Hyun
TI - An Empirical Analysis of the Insurance Investors’ Trading and Its Effects on Stock Markets
JO - Journal of Insurance and Finance
PY - 2018
VL - 29
IS - 3
PB - Korea Insurance Research Institute
SP - 3
EP - 44
SN - 2384-3209
AB - This study investigates the stock preferences and investment strategies of insurance investors and the effects of their trading on the Korean stock markets. For this purpose, we examine the investment portfolio of insurance investors from 2005 to 2017. The major findings are as follows. First, insurance investors have a significant preference for stocks with high market capitalization, high price level, high liquidity, and low volatility. Second, the involvement intensity of insurance investors is higher in the KOSPI market than the KOSDAQ market. Third, at the market level, insurance investors take contrarian investment strategies by buying losers and selling winners. Forth, at the stock level, they also take investment strategies buying stocks with low returns in the recent past. This investment strategy is more prominently observed in the KOSDAQ market. Lastly, we find that insurance investors serve a role of the stock market stabilizer by enhancing the liquidity and mitigating volatility. While the liquidity effect is stronger in the KOSPI market, the volatility effect is more prominent in the KOSDAQ market. Considering the rapidly increasing investment of insurance investors in the stock market, the analysis of their trading characteristics and influence on the stock market is crucial, especially with a comprehensive long-term dataset covering the most recent period. Our findings suggest that the increasing involvement of insurance investors in stock trading is expected to provide a positive influence on the stock market in terms of market liquidity and volatility.
KW - Insurance investors;NIF(net investment flow);Investment characteristics;Contrarian strategy;Market stabilization
DO - 10.23842/jif.2018.29.3.001
ER -

Min-Cheol Woo and Kim, Jee-Hyun. (2018). An Empirical Analysis of the Insurance Investors’ Trading and Its Effects on Stock Markets. Journal of Insurance and Finance, 29(3), 3-44.

Min-Cheol Woo and Kim, Jee-Hyun. 2018, "An Empirical Analysis of the Insurance Investors’ Trading and Its Effects on Stock Markets", Journal of Insurance and Finance, vol.29, no.3 pp.3-44. Available from: doi:10.23842/jif.2018.29.3.001

Min-Cheol Woo, Kim, Jee-Hyun "An Empirical Analysis of the Insurance Investors’ Trading and Its Effects on Stock Markets" Journal of Insurance and Finance 29.3 pp.3-44 (2018) : 3.

Min-Cheol Woo, Kim, Jee-Hyun. An Empirical Analysis of the Insurance Investors’ Trading and Its Effects on Stock Markets. 2018; 29(3), 3-44. Available from: doi:10.23842/jif.2018.29.3.001

Min-Cheol Woo and Kim, Jee-Hyun. "An Empirical Analysis of the Insurance Investors’ Trading and Its Effects on Stock Markets" Journal of Insurance and Finance 29, no.3 (2018) : 3-44.doi: 10.23842/jif.2018.29.3.001

Min-Cheol Woo; Kim, Jee-Hyun. An Empirical Analysis of the Insurance Investors’ Trading and Its Effects on Stock Markets. Journal of Insurance and Finance, 29(3), 3-44. doi: 10.23842/jif.2018.29.3.001

Min-Cheol Woo; Kim, Jee-Hyun. An Empirical Analysis of the Insurance Investors’ Trading and Its Effects on Stock Markets. Journal of Insurance and Finance. 2018; 29(3) 3-44. doi: 10.23842/jif.2018.29.3.001

Min-Cheol Woo, Kim, Jee-Hyun. An Empirical Analysis of the Insurance Investors’ Trading and Its Effects on Stock Markets. 2018; 29(3), 3-44. Available from: doi:10.23842/jif.2018.29.3.001

Min-Cheol Woo and Kim, Jee-Hyun. "An Empirical Analysis of the Insurance Investors’ Trading and Its Effects on Stock Markets" Journal of Insurance and Finance 29, no.3 (2018) : 3-44.doi: 10.23842/jif.2018.29.3.001