Disposition Effect Under American And European Insider Traders
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2021-10-26
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en
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Disposition Effect Under American And European Insider Traders
By YOURI MARKINK (1009987)
While most studies agree about the existence of the disposition effect under ordinary investors, it is fairly unknown whether or not the effect also occurs amongst insider traders. This paper studies the existence of the disposition effect under a yet to be discovered sample, i.e. insiders from European and American companies. This study conducts OLS regressions and makes group comparisons to research the disposition effect and analyze differences between the two regions, insider groups and firm sizes. The paper finds an aggregated disposition effect in the full insider sample. Additionally, it finds that the disposition effect is the highest amongst the blockholders subgroup compared to officers, directors, and others. Furthermore, the paper concludes that insiders from European companies show higher levels of the disposition effect than insiders from American companies. Lastly, insiders from big size firms show higher levels of the disposition effect than insiders from small size firms.
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Faculteit der Managementwetenschappen