Do Proxies for Informed Trading Measure Informed Trading? Evidence from Illegal Insider Trades
نویسندگان
چکیده
منابع مشابه
Informed Options Trading prior to M&A Announcements: Insider Trading?∗
We investigate informed trading activity in equity options prior to the announcement of corporate mergers and acquisitions (M&A). For the target companies, we document pervasive directional options activity, consistent with strategies that would yield abnormal returns to investors with private information. This is demonstrated by positive abnormal trading volumes, excess implied volatility and ...
متن کاملInformed Options Trading prior to Takeover Announcements: Insider Trading?∗
We quantify the pervasiveness of informed trading activity in target companies’ equity options before M&A announcements. About 25% of takeovers have positive abnormal volumes, which are greater for short-dated out-of-the-money calls, consistent with bullish directional trading ahead of the announcement. Over half of this abnormal activity cannot be explained by speculation, news and rumors, tra...
متن کاملDo Deviations from Investor Preferences Signal Informed Trading?
This paper provides a novel method for identifying informed institutional trading. I argue that, given an information signal about a stock, an investor’s tastes for certain characteristics of that stock can influence his decision to trade on the information. Thus, trades which deviate from an investor’s tastes are more likely to reflect information. I test this hypothesis with respect to invest...
متن کاملDo Deviations from Investor Tastes Signal Informed Trading?
This paper provides a novel method for identifying informed institutional trading by conditioning on investors’ tastes. Given an information signal about a stock, an investor’s tastes for certain characteristics of that stock can influence his decision to trade. Thus, trades which deviate from an investor’s tastes are more likely to reflect information. I test this hypothesis with respect to in...
متن کاملInsider Trading after Repurchase Tender Offer Announcements: Timing versus Informed Trading
Abnormally high net insider selling is commonly observed after repurchase tender offer (RTO) announcements although, on average, firms experience positive abnormal returns in the years after the repurchases. We explore two potential explanations: liquidity trade timing and informed trading. Consistent with the notion that fixed price RTOs are more likely than Dutch-auction RTOs to signal underv...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: The Review of Asset Pricing Studies
سال: 2020
ISSN: 2045-9920,2045-9939
DOI: 10.1093/rapstu/raaa004