The Informative Content of CEO and CFO Insider Trading: New Evidence from the Financial Crisis
نویسندگان
چکیده
This paper investigates the impact of CEO and CFO insider purchases on stock returns. The analysis distinguishes between the opportunistic and routine trades made before, during and after the financial crisis of 2007-2008. The results suggest that the informative content of insider trading is weaker than what prior research suggests. The returns on purchases are stronger in the short term and CEO purchases are on the whole more informative than CFO purchases. Finally, we find that the opportunistic trades are generally more informative but there is no evidence for the positive impact of opportunistic purchases on returns during the crisis.
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