Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80329
Authors: 
Croonenbroeck, Carsten
Matkovskyy, Roman
Year of Publication: 
2013
Series/Report no.: 
Discussion Paper, European University Viadrina, Department of Business Administration and Economics 338
Abstract: 
Czarnitzki and Stadtmann (2005) measure the interdependence of demand for investment advice (approximated by sales of investor magazines) and stock prices. They find strong evidence that confirms the presence of the disposition effect, i.e. the empirical observation that investors sell winners (too) early and abide losers (too) long. We re-investigate their findings and confirm that the effect is very well present in the formerly analyzed time frame, but clearly wears off afterward. As an explanation for the decline, we provide three lines of argumentation and show that disposition effect might dependent on the shareholder structure, which is in line with the theory.
Subjects: 
Disposition Effect
Market Decisions
Market Efficiency
Financial Crisis
Market Structure
JEL: 
D81
G11
G14
Document Type: 
Working Paper

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