This paper examines the equity market return predictability of institutional investor sentiment, in comparison to individual investor sentiment. Our findings suggest that institutional traders are informed and that their sentiment helps to tilt stock prices towards the intrinsic value. This is because the sentiment of institutions encompasses news regarding expectations on future cash flows of underlying firms that impounds itself into future price expectations. In this study, we add to the large number of studies that investigate the role and implications of investor sentiment, which has long been viewed as a pure behavioural phenomenon, on market efficiency and price discovery.

中文翻译：

---

机构投资者情绪和股票总回报

与个人投资者情绪相比，本文研究了机构投资者情绪对股市回报的可预测性。我们的研究结果表明，机构交易者是知情的，他们的情绪有助于使股价向内在价值倾斜。这是因为机构的情绪包含有关潜在公司未来现金流量预期的消息，这些消息将自身纳入未来价格预期。在这项研究中，我们增加了大量调查投资者情绪对市场效率和价格发现的作用和影响的研究，投资者情绪长期以来被视为一种纯粹的行为现象。