Friedman, Johnson, and Mitton (2003) develop a model in which, in equilibrium, controlling shareholders may choose either tunneling from or propping up their listed company depending on the magnitude of an adverse shock and the magnitude of the private benefits of control. In this paper, we...

We develop a new measure for disposition effects based on the average length of a trading strategy and whether it is loss-making or profitable. Using this new measure, we are able to evaluate disposition effects in more detail than has been possible previously. We find for the first time the...

Friedman et al. (2003) develop a model in which, in equilibrium, controlling shareholders may choose either tunneling or propping of their listed companies depending on the magnitude of an adverse shock and the magnitude of the private benefits of control. In this paper, we employ connected...