Insider Trading Patterns

  title={Insider Trading Patterns},
  author={Lee Biggerstaff and David C. Cicero and M. Babajide Wintoki},
  journal={Corporate Governance: Internal Governance},
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
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