EconPapers    
Economics at your fingertips  
 

Do Individual Investors Have Asymmetric Information Based On Work Experience?

Trond Døskeland () and Hans K. Hvide

No 7428, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Using a novel and unique dataset from Norway, we analyze whether professional proximity is associated with asymmetric information and abnormal returns. We find that individuals hold an excess weight in stocks that are professionally close. For example, after excluding holdings of own-company and previous employer stock, investors on average hold 11% of their portfolio in stocks within their two-digit industry of employment. We find no evidence that investments in professionally close stocks are associated with a positive abnormal return in either the short or the long term. In some specifications, we find evidence of a negative abnormal return. We conclude there is no evidence of professional proximity being associated with asymmetric information and abnormal returns.

Keywords: asymmetric information; behavioral finance; familiarity; household finance (search for similar items in EconPapers)
JEL-codes: D83 G11 J24 (search for similar items in EconPapers)
Date: 2009-08
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/pubs/dps/DP7428.asp (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Do Individual Investors Have Asymmetric Information Based on Work Experience? (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:cpr:ceprdp:7428

Ordering information: This working paper can be ordered from
http://www.cepr.org/pubs/dps/DP7428.asp

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers
Address: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ
Series data maintained by ().

 
Page updated 2014-04-06
Handle: RePEc:cpr:ceprdp:7428