Abstract

http://ssrn.com/abstract=2128127
 
 

References (33)



 


 



Insider Trading Patterns


David C. Cicero


University of Alabama - Culverhouse College of Commerce & Business Administration

M. Babajide Wintoki


University of Kansas - School of Business

February 3, 2014


Abstract:     
We analyze the information content of corporate insiders' trades after accounting for certain trading patterns. Insiders spread their trades over longer periods of time when they have a longer-lived informational advantage and when outside investors are less attentive. In contrast, they make isolated trades in short windows of time when their informational advantage is short-lived. Both isolated trades and trade sequences (those spread over multiple consecutive months) predict sizable abnormal returns; for sequences, these abnormal returns are manifest only following the completion of the sequence. The return patterns we identify continue to hold for a large group of insiders that would have been classified as "routine" traders by prior research, suggesting that informed insider trading may be even more widespread than previously thought.

Number of Pages in PDF File: 43

Keywords: insider trading, informed trading, executive trading, trade patterns

JEL Classification: G12, G14, G18

working papers series





Download This Paper

Date posted: August 12, 2012 ; Last revised: February 6, 2014

Suggested Citation

Cicero, David C. and Wintoki, M. Babajide, Insider Trading Patterns (February 3, 2014). Available at SSRN: http://ssrn.com/abstract=2128127 or http://dx.doi.org/10.2139/ssrn.2128127

Contact Information

David C. Cicero
University of Alabama - Culverhouse College of Commerce & Business Administration ( email )
Culverhouse College of Business
Tuscaloosa, AL 35487-0223
United States
Modupe Babajide Wintoki (Contact Author)
University of Kansas - School of Business ( email )
1300 Sunnyside Avenue
Lawrence, KS 66045
United States
Feedback to SSRN


Paper statistics
Abstract Views: 3,433
Downloads: 677
Download Rank: 20,391
References:  33

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.391 seconds