Abnormal Returns from the Common Stock Investments of the U.S. Senate

@article{Ziobrowski2004AbnormalRF,
  title={Abnormal Returns from the Common Stock Investments of the U.S. Senate},
  author={Alan J. Ziobrowski and Ping Cheng and James W. Boyd and Brigitte J. Ziobrowski},
  journal={Journal of Financial and Quantitative Analysis},
  year={2004},
  volume={39},
  pages={661 - 676}
}
Abstract The actions of the federal government can have a profound impact on financial markets. As prominent participants in the government decision making process, U.S. Senators are likely to have knowledge of forthcoming government actions before the information becomes public. This could provide them with an informational advantage over other investors. We test for abnormal returns from the common stock investments of members of the U.S. Senate during the period 1993–1998. We document that a… Expand
Abnormal Returns From the Common Stock Investments of Members of the U.S. House of Representatives
A previous study suggests that U.S. Senators trade common stock with a substantial informational advantage compared to ordinary investors and even corporate insiders. We apply precisely the sameExpand
"Trading" Political Favors: Evidence from the Impact of the STOCK Act
This paper demonstrates the tacit benefits that accrue to both politicians and the firms to which they are connected through stock ownership. Specifically, we show strong evidence that politiciansExpand
Capitol Losses: The Mediocre Performance of Congressional Stock Portfolios, 2004-2008
Given the well-documented effects of public policy on financial markets, one would expect political insiders to be capable of enriching themselves through savvy investing. Consistent with this, twoExpand
The amendment of the U.S. stock act and the prices of stocks most held by congress
This paper examines the returns of stocks most frequently held by members of the US Congress surrounding the amendment to the “Stop Trading on Congressional Knowledge” (STOCK) Act, which relaxed someExpand
Trading on Private Information: Evidence from Members of Congress
This paper investigates whether members of Congress use private information in their stock transactions. We analyze 61,998 congressional common stock transactions over the 2004-2010 period, and findExpand
Trading on Private Information: Evidence from Members of Congress
I examine the stock trades of members of Congress and find that over 2004–2010 the buy‐minus‐sell portfolios of powerful Republicans have the highest abnormal returns, exceeding 35%Expand
Change in Capitol: How a 60 Minutes Exposé and the STOCK Act Affected the Investment Activity of U.S. Senators
A hedged portfolio mimicking the buys and sells of U.S. Senators earns an 8.8% annualized abnormal return before 60 Minutes exposed arguably unethical trading activity by Senators. “Insiders”Expand
Legislating Stock Prices
In this paper we demonstrate that legislation has a simple, yet previously undetected impact on firm stock prices. While it is understood that the government and firms have an important relationship,Expand
Aggregate congressional trading and stock market returns
Purpose What information do members of Congress (politicians) use when they trade stocks? The purpose of this paper is to attempt to answer this question by investigating the relationship between anExpand
Parliament Session Effect on the Indian Stock Markets
The presence of political risk is a worldwide phenomenon that has affected most national stock markets in the twentieth century. Within this context, it is often said that returns of the stockExpand
...
1
2
3
4
5
...

References

SHOWING 1-10 OF 44 REFERENCES
Risk and return: The case of merging firms
Abstract This study examines the market for acquisitions and the impact of mergers on the returns to the stockholders of the constituent firms. While employing the two-factor market model as recentlyExpand
Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors
Individual investors who hold common stocks directly pay a tremendous performance penalty for active trading. Of 66,465 households with accounts at a large discount broker during 1991 to 1996, thoseExpand
The New Issues Puzzle
Companies issuing stock during 1970 to 1990, whether an initial public offering or a seasoned equity offering, have been poor long-run investments for investors. During the five years after theExpand
Special Information and Insider Trading
Trading by corporate officers, directors, and large stockholders, who are commonly called insiders, commands widespread attention in the financial community. Academicians are interested in the amountExpand
Managerial Decisions and Long-Term Stock Price Performance
A rapidly growing literature claims to reject the efficient market hypothesis by producing large estimates of long-term abnormal returns following major corporate events. The preferred methodology inExpand
Estimating the Returns to Insider Trading: A Performance-Evaluation Perspective
This paper uses performance-evaluation methodology to estimate the returns earned by insiders when they trade their company's stock. Our methods are designed to estimate the returns earned byExpand
Common risk factors in the returns on stocks and bonds
This paper identities five common risk factors in the returns on stocks and bonds. There are three stock-market factors: an overall market factor and factors related to firm size and book-to-marketExpand
The theory of public choice--II
That economics can usefully explain politics is no longer a novel idea, it is a well-established fact brought about by the work of many public choice scholars. This book, which is a sequel to aExpand
Market Efficiency, Long-Term Returns, and Behavioral Finance
Market efficiency survives the challenge from the literature on long-term return anomalies. Consistent with the market efficiency hypothesis that the anomalies are chance results, apparentExpand
Estimating Returns to Insider Trading: A Performance Perspective
  • Boston Univ
  • 2001
...
1
2
3
4
5
...