Asymmetric Investor Behavior between Buyside and Sellside: Evidence from Investor Classes in the Sri Lankan Stock Market



Date of this version


Document Type



Equity flows, Positive feedback, Contrarian, Foreign and domestic investors, Emerging markets, Colombo Stock Exchange


Using unique trading data for investor classes from Sri Lanka, this study finds asymmetric investor behavior between buyside and sellside in large trades. Investors are positive feedback traders on the buyside and contrarians on the sellside. Domestic investors exhibit more feedback and contrarian behavior than foreign investors, suggesting that foreign investors are more informed on the buyside and less informed on the sellside. Individuals are more feedback and contrarian traders than institutions. Foreign institutional investor sales do not precede, coincide with, or lead to significant returns. Trades do not lead to price momentum or reversals, but leave a permanent positive price effect.

Published in

Journal of Multinational Financial Management

Citation/Other Information

Vol 20 pg 93-113