Does modern information technology affect asymmetric V-shape disposition effect?

Abstract

I test how the new acquirable information affects individual investors' disposition effect. By using the Electronic Data Gathering Analysis and Retrieval system (EDGAR) implementation as a policy change, I find individual investors tend to be more hesitant on selling the stocks and more aggressive on buying additional shares they currently own after the stocks become EDGAR flers. These opposite impacts are concentrated on investors who trade with higher frequency and the stocks whose value is hard to be estimated. The opposite impacts could be driven by investors' overconfidence.