Surveying the Asymmetry of Price Impact of Block Trades in between Buying and Selling

Subject Areas : Journal of Investment Knowledge

Ahmad Ahmadpour ¹ (Professor of Accounting, University of Mazandaran (Corresponding Author))
Mehrab Nasiri ² (MSc Accounting, University of Mazandaran.)

Received: 2014-11-26 Accepted : 2015-02-08 Published : 2015-02-08

Keywords: block trades, block buying and selling and P,

Abstract :

The main purpose of this study, is surveying the asymmetry of price impact of block trades in buying and selling. For this reason, the sample consisted of 525 block trades (310 block in buying and 215 block in selling)have been selected randomly of companies that have block trade during the period 1390 to 1392. This trades have attracted the attention of shareholders because of low limits, high volume and price effects. Shareholders do block trades to identify, assess and improve liquidity and market capacity. In this study, first block trades divided into two group’s in buying and selling with using the midpoint method, then the hypotheses are tested. According to previous studies, cross-sectional regression results indicate that there is asymmetry between price impact of block trades in buying and selling.

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