This table summarizes the characteristics of the sample of all trades, and the attributes of the firms traded, by individual accountholders in every age group along with the two sets of guardian accounts. The first column of Panel A reports the total number of trading days across all stocks and individual accountholders in every group. The second column gives the percent of total trading days attributable to every group. The third column shows the percent of trading days in which the accountholder was a net buyer. Columns 4 and 5 report the average € value of shares bought and sold per transaction, for every group. Column (6) provides the percent of all trades made by female
accountholders. For every group, the last two columns give the number of accounts and the median wealth (i.e., account size in euros) on January 5, 2005. The total number of trades (N) in column (1) is obtained by summing over all individuals in the six age groups.
Panel B reports the mean adjusted ranks of the control variables for every group. Control variables include the firm's beta, market-to-book ratio, size, and previous stock returns taken over four time frames. These variables are defined as follows. Beta (β) is the firm's Dimson beta computed over the prior 250 trading days. Size is the firm's market capitalization, using share prices and the number of shares outstanding from Compustat Global. M/B is the firm's market-to-book ratio obtained from Worldscope. RYear is the firm's stock return over the previous twelve months, excluding the most recent month; RMonth is the stock return over the past month, excluding the last week; RWeek is the return over the past week, excluding the previous day; and RDay is the previous day's return. We transform each control variable into decile ranks by first sorting the cross section of stocks each day into 10 groups. Next we assign a value to the stocks in each decile, where the values are adjusted to range from -0.5 (for the lowest decile) to +0.5 (for the highest decile). The mean adjusted rank values in Panel B of Table 1 are then obtained by averaging these adjusted ranks across all stock trading days within every age group.
(1) (2) (3) (4) (5) (6) (7)
age group (i) Rank(β) Rank(M/B) Rank(Size) Rank(Ryear) Rank(Rmonth) Rank(Rweek) Rank(Rday)
1: 0-10 .16 .12 .25 -.03 -.02 -.01 .00 2: 11-20 .16 .13 .26 .00 .00 .00 .01 3: 21-40 .19 .14 .23 -.04 -.02 -.01 .00 4: 41-60 .19 .13 .26 -.03 -.01 .00 .00 5. 61-80 .17 .11 .29 .00 .01 .00 .01 6: 81+ .14 .09 .31 .03 .02 .01 .01 Guardians-Family .16 .10 .21 -.04 -.02 -.01 .00 Guardians-Corp .15 .08 .23 -.02 .00 .00 .01
Panel B. Attributes of Firms Traded by Accountholders in Different Age Groups and Guardians Table I, continued
Table II. Performance of Young versus Older Accountholders across All Trades Made over the Previous Ten Days
(1) (2) (3) (4) (5) (6)
Intercept a0 .011 0.3 .030 1.2 -.007 -0.2 .035 1.5 .018 1.1 -.004 -0.5
BABY a1 .057 3.2 *** .040 2.9 *** -.057 -1.9 * -.048 -2.1 ** .114 3.2 *** .089 3.2 ***
Control Variables No Yes No Yes No Yes
(1) (2) (3) (4) (5) (6) Intercept b0 .010 0.3 .033 1.3 .000 0.0 .043 1.8 * .011 0.6 -.009 -1.0 BABY b1 .064 2.7 *** .040 2.1 ** -.062 -1.9 * -.062 -2.1 ** .126 2.8 *** .102 2.9 *** GUARDIAN-Family b2 .076 7.2 *** .054 7.1 *** .013 1.2 .013 1.6 .063 4.2 *** .041 3.7 *** GUARDIAN-Corp b3 .078 6.0 *** .064 7.6 *** .007 0.6 .002 0.3 .071 4.5 *** .062 5.5 *** MATCH * BABY b4 -.007 -0.2 .011 0.4 .020 0.5 .026 0.7 -.027 -0.5 -.015 -0.3
Control Variables No Yes No Yes No Yes
Panel B. Young versus Older Accountholders and Guardians, for Trades on Day -1
Purchases Sales Hedge Portfolio
Panel A. Young versus Older Accountholders, for Trades on Day -1
Purchases Sales Hedge Portfolio
This table presents Fama-MacBeth mean daily coeffcients from estimating models (1) and (2), to analyze the average return realized by young versus older accountholders on day t, based on earlier trades made on day t-x, where the lag (x) is varied from one to ten days:
Returni,t = a0 + a1 BABYi,t-x + [Control Variables]i,t + εi,t , (1) Returni,t = b0 + b1 BABYi,t-x + b2 GUARDIAN-Familyi,t-x + b3 GUARDIAN-Corpi,t-x + b4 MATCHi,t-x * BABYi,t-x + [Control Variables]i,t + εi,t , (2) where BABYi,t-x is 1 for purchases (sales) in stock i made on day t-x by accountholders aged 0 to 10 years, or 0 otherwise; GUARDIAN-Familyi,t-x is 1 for all trades made by guardians matched to family name, or 0 otherwise; GUARDIAN-Corpi,t-x is 1 for all trades made by guardians matched to corporate trades, or 0 otherwise; and MATCHi,t-x = 1 for trades by underaged investors matched to either set of guardians, or 0 otherwise. Panels A and B provide the results for (1) and (2), respectively, based on trades made one day earlier. Panels C and D present analogous results for model (2), omitting the interaction term, for trades made two and three days earlier. Panel E then provides the average results based on earlier trades made during the previous two weeks (i.e., days -4 through -10). In each case we provide regression results both including and excluding the adjusted ranks for the following firm-specific control variables: Beta, M/B, Size, RYear, Rmonth, Rweek, and Rday. Control variables are defined in Table I. All returns are in percentage points, with the associated t-statistics to the right of each coefficient estimate.
Table II, continued (1) (2) (3) (4) (5) (6) Intercept b0 -.006 -0.2 -.009 -0.4 -.047 -1.5 -.006 -0.3 .041 2.7 *** -.003 -0.4 BABY b1 .039 2.3 ** .037 2.6 *** -.055 -2.0 ** -.027 -1.2 .094 3.0 *** .065 2.5 ** GUARDIAN-Family b2 .049 4.9 *** .043 5.6 *** -.015 -1.3 -.018 -2.1 ** .064 4.2 *** .061 5.3 *** GUARDIAN-Corp b3 .039 3.3 *** .031 4.0 *** .017 1.6 * -.001 -0.1 .021 1.5 .031 3.0 ***
Control Variables No Yes No Yes No Yes
(1) (2) (3) (4) (5) (6)
Intercept b0 .011 0.3 -.005 -0.2 -.032 -1.0 .000 0.0 .043 2.8 *** -.005 -0.6
BABY b1 .008 0.4 .011 0.8 -.059 -2.0 ** -.036 -1.6 * .066 2.0 ** .047 1.8 *
GUARDIAN-Family b2 .026 2.8 *** .024 3.5 *** -.004 -0.4 -.003 -0.4 .031 2.3 ** .028 2.8 *** GUARDIAN-Corp b3 .058 5.0 *** .037 4.9 *** .000 0.0 -.008 -1.2 .059 3.9 *** .046 4.2 ***
Control Variables No Yes No Yes No Yes
(1) (2) (3) (4) (5) (6)
Intercept b0 .000 0.0 .005 0.2 -.019 -0.6 .001 0.0 .019 1.4 .005 0.6
BABY b1 .012 1.4 .006 1.0 -.011 -0.8 -.014 -1.3 .024 1.4 .020 1.6 *
GUARDIAN-Family b2 .012 2.0 ** .010 2.3 ** -.011 -1.7 * -.010 -2.3 ** .023 2.7 *** .020 3.3 *** GUARDIAN-Corp b3 .021 2.1 ** .019 3.2 *** -.005 -0.6 .001 0.2 .026 2.2 ** .018 2.4 **
Control Variables No Yes No Yes No Yes
* indicates statistical significance at the .10 level; ** at the .05 level; and *** at the .01 level.
Hedge Portfolio
Purchases Sales
Panel C. Young versus Older Accountholders and Guardians, for Trades on Day -2
Panel D. Young versus Older Accountholders and Guardians, for Trades on Day -3
Panel E. Young versus Older Accountholders and Guardians, for Days -4 through -10
Purchases Sales Hedge Portfolio
Table III. Descriptive Statistics for Samples of Events
Panel A: Descriptive Statistics for CAR(0,+1) for Sample of Earnings Announcements
mean stdev min max q3 median q1 # > 0 # < 0
good news 8.85 5.03 4.00 60.25 10.73 7.47 5.30 746 0
bad news -8.86 5.01 -60.61 -4.01 -5.33 -7.44 -10.76 0 746
Panel B: Descriptive Statistics for CAR(0,+1) for Sample of Large Price Changes
mean stdev min max q3 median q1 # > 0 # < 0
good news 10.98 8.94 4.00 90.81 12.84 8.50 6.11 771 0
bad news -10.97 8.97 -91.67 -4.03 -6.07 -8.58 -12.85 0 771
Panel C: Descriptive Statistics for CAR(0,+1) for Sample of Takeover Announcements
mean stdev min max q3 median q1 # > 0 # < 0 all events 10.31 22.35 -12.72 184.19 13.75 3.19 0.17 109 33
This table presents descriptive statistics for CAR(0,+1) for the different samples of events analyzed in this study. Panels A and B provide the results for the samples of earnings announcements and large absolute price changes, respectively. In each row of these first two panels, we separately present the summary statistics for the matched subsamples of good news events (where CAR(0,+1) > 0) and bad news events (where CAR(0,+1) < 0). Panel C provides the results for the entire sample of takeover announcements. All returns are in percentage points.