Does high-quality corporate communication reduce insider trading profitability?
نویسندگان
چکیده
منابع مشابه
The Timing and Profitability of Insider Trading in Canada
This paper examines the timing and profitability of insider trading in Canada from 1987 to 2000. In contrast to studies done on earlier time periods, we find that insiders are net sellers of shares. This is especially true of senior officers who sell nearly seven shares for every share they purchase. We attribute this change to the increased use of stock options as compensation. Insiders are sh...
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Recent research has documented empirical evidence of informed trading ahead of major corporate events such as earnings announcements, mergers and acquisitions (M&A) and corporate bankruptcies. Surprisingly, however, no such evidence exists ahead of corporate divestiture or spinoff (SP) announcements. This is noteworthy because the parent company’s stock usually experiences a significant price j...
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This paper addresses the question of how the timing of corporate insider trading is related to the level of information asymmetry in a stock price. Our empirical analysis shows that, when buying their firm’s shares, corporate insiders are likely to exploit their informational advantage through trading at times of high information asymmetry, while their selling appears more cautious because of r...
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We investigate if prior professional legal education either restrains or increases the extent to which the insider trades of company executives and directors are informed. We show that lawyer-insiders earn significantly lower abnormal returns than non-lawyers when they purchase their own company’s shares. Purchases of own company stock by lawyer-insiders are associated with lower future earning...
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ژورنال
عنوان ژورنال: International Review of Law and Economics
سال: 2014
ISSN: 0144-8188
DOI: 10.1016/j.irle.2013.04.002