Abstract

http://ssrn.com/abstract=1787482
 
 

References (30)



 
 

Citations (2)



 


 



Are CFOs’ Trades More Informative than CEOs’ Trades?


Weimin Wang


Saint Louis University

Yong-Chul Shin


University of Massachusetts Boston

Bill B. Francis


Rensselaer Polytechnic Institute (RPI) - Lally School of Management

March 15, 2011

Journal of Financial and Quantitative Analysis (JFQA), Forthcoming

Abstract:     
We investigate whether trades made by CFOs reveal more information about future stock returns than those by CEOs. We find that CFOs earn statistically and economically higher abnormal returns following their purchases of company shares than CEOs. During 1992-2002, CFOs earned an average 12-month excess return that is 5% higher than that by CEOs. The superior performance by CFOs occurs notwithstanding controls for risk factors, and persists even after their trades are publicly disclosed. Further analysis shows that CFO purchases are associated with more positive future earnings surprises than CEO purchases, suggesting that CFOs incorporate better information about future earnings.

Number of Pages in PDF File: 38

Keywords: insider trade, CFO, CEO

JEL Classification: G14

Accepted Paper Series


Download This Paper

Date posted: March 19, 2011 ; Last revised: March 25, 2011

Suggested Citation

Wang, Weimin and Shin, Yong-Chul and Francis, Bill B., Are CFOs’ Trades More Informative than CEOs’ Trades? (March 15, 2011). Journal of Financial and Quantitative Analysis (JFQA), Forthcoming. Available at SSRN: http://ssrn.com/abstract=1787482

Contact Information

Weimin Wang (Contact Author)
Saint Louis University ( email )
Yong-Chul Shin
University of Massachusetts Boston ( email )
Boston, MA 02125
United States
Bill B. Francis
Rensselaer Polytechnic Institute (RPI) - Lally School of Management ( email )
Troy, NY 12180
United States
Feedback to SSRN


Paper statistics
Abstract Views: 3,344
Downloads: 444
Download Rank: 35,045
References:  30
Citations:  2

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.641 seconds