Insider Trading Patterns

@article{Biggerstaff2020InsiderTP,
  title={Insider Trading Patterns},
  author={Lee Biggerstaff and David C. Cicero and M. Babajide Wintoki},
  journal={Corporate Governance: Internal Governance},
  year={2020}
}
We find that corporate insiders trade over longer periods of time when they may have a longer-lived informational advantage. Controlling for the duration of insiders' trading strategies, both their sales and purchases predict sizable abnormal returns on average. We discuss how failure to account for these trading patterns has previously masked the returns to insider trading, and show how accounting for them helps sharpen screens for corporate insiders who trade on information. We also provide… Expand
The Information Content of Insider Trades: Whose Trades Matter and When?
By virtue of their positions, corporate executives have access to valuable information about the firms they work for and the industries they work in. They also have an opportunity to profit from saidExpand
Mimicking insider trades
Abstract We examine whether outside investors mimic insider trades by analyzing the daily transactions of foreign institutional investors (FII) in the Indian emerging market. We find that the valueExpand
Insider Investment Horizon
We examine the relation between insiders’ investment horizon and the information content of their trades with respect to future stock returns. We conjecture that an insider's investment horizonExpand
Strategic Trading by Insiders in Reaction to Institutions: A Rat-Race Effect
We examine how trading by institutional traders affects those by insiders. Using data at the trade level, we find insiders complete their trades faster when institutions trade on the same side in theExpand
Insider trading and the legal expertise of corporate executives
Abstract 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 thatExpand
Insider trading and shareholder investment horizons
Abstract This paper examines the effects of shareholder investment horizons on insider trading. We find that insiders are less likely to trade on private information and the profitability of insiderExpand
Insider Investment Horizon January 2016
We examine the relation between insiders’ investment horizons and the informativeness of their trading activity regarding future stock returns. We show that both purchases and sales by short horizonExpand
Political Connections and Insider Trading
Politically connected insiders, especially senior officers who hold a director position, are more likely to make informed trades than non-politically connected insiders. This effect, however, isExpand
Retail Investor Attention and Insider Trading
We document a strong link between retail investor attention and opportunistic insider trading. An increase (decrease) in retail attention on a stock is associated with significantly more insiderExpand
Insider Trading and Investor Sentiment
This paper provides evidence that corporate insiders consider investors’ sentiment toward their firms in their trades. Using turnover ratio and option implied volatility as proxies for firm-specificExpand
...
1
2
...

References

SHOWING 1-10 OF 74 REFERENCES
Insider Trading and Voluntary Disclosures
We hypothesize that insiders strategically choose disclosure policies and the timing of their equity trades to maximize trading profits, subject to the litigation costs associated with disclosure andExpand
Are Insider Trades Informative
We document insider trading activities of all companies listed on the NYSE, Amex, and Nasdaq exchanges during the 1975-1995 period. Insider trading is common, and in more than half the sample firms,Expand
Trading Strategies of Corporate Insiders
We test two complementary theories of optimal trading strategies by analyzing the transaction patterns of corporate insiders. According to information-based theories, investors trade faster if theyExpand
An Empirical Analysis of Illegal Insider Trading
Whether insider trading affects stock prices is central to both the current debate over whether insider trading is harmful or pervasive, and to the broader public policy issue of how best to regulateExpand
Strategic Disclosure Timing and Insider Trading
I provide evidence that managers strategically manipulate their company’s information environment to extract private benefits. Exploiting an SEC requirement that managers disclose certain materialExpand
Attentive Insider Trading
We provide evidence that some profitable insider stock selling is motivated by public information. At firms that disclose having concentrated sales relationships, insiders appear to sell their ownExpand
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
Mimickers of Corporate Insiders Who Make Large-Volume Trades
Most prior research shows that corporate insiders can systematically earn abnormal returns by buying or selling their own securities. Also, several studies have investigated whether outsiders canExpand
Investment intelligence from insider trading
The term insider trading refers to the legal stock transactions of the officers, directors, and large shareholders of a firm. Many investors believe that corporate insiders, informed about theirExpand
Decoding Inside Information
Using a simple empirical strategy, we decode the information in insider trades. Exploiting the fact that insiders trade for a variety of reasons, we show that there is predictable, identifiableExpand
...
1
2
3
4
5
...