Are Corporate Spin-offs Prone to Insider Trading?∗
نویسندگان
چکیده
Recent research has documented empirical evidence of informed trading ahead of major corporate events such as earnings announcements, mergers and acquisitions and corporate bankruptcies. However, no such evidence exists ahead of corporate spinoffs (SP). Using a sample of 426 corporate SPs from 1996 to 2013, we document pervasive activity in options of the parent company, but not in stocks, that could yield very high returns to informed traders. Quantitatively, about 13% of all deals exhibit significant abnormal options volume in the pre-announcement period. The odds of abnormal options volume being greater in a control sample are about one in 4,000.
منابع مشابه
Are Corporate Spin-offs Prone to Insider Trading?∗ Preliminary Draft
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