Managers and Investor Sentiment

41 Pages Posted: 20 Apr 2013

See all articles by Paul Hribar

Paul Hribar

University of Iowa - Henry B. Tippie College of Business

Phillip J. Quinn

University of Washington - Foster School of Business

Date Written: January 24, 2013

Abstract

We examine the relation between managerial trading and market sentiment. We investigate whether managers' trades are associated with changes in market sentiment, and we find they are negatively related. We then explore cross-sectional differences in managerial trading and find trading against sentiment is strongest in firms that are difficult-to-value, such as small firms and loss firms. Our results are robust to controlling for other determinants of insider trading, including insiders' tendency to be contrarian investors, wealth diversification concerns, tax-motivated selling, and CEO overconfidence.

Keywords: investor sentiment, insider trading, voluntary disclosure

JEL Classification: M10, M40, M41, G29, G30, E44

Suggested Citation

Hribar, Paul and Quinn, Phillip J., Managers and Investor Sentiment (January 24, 2013). Available at SSRN: https://ssrn.com/abstract=2240631 or http://dx.doi.org/10.2139/ssrn.2240631

Paul Hribar

University of Iowa - Henry B. Tippie College of Business ( email )

Dept. of Accounting
Iowa City, IA 52242-1000
United States
319-335-1008 (Phone)

Phillip J. Quinn (Contact Author)

University of Washington - Foster School of Business ( email )

4295 E Stevens Way NE
PACCAR Hall #468
Seattle, WA 98105
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
386
Abstract Views
2,422
rank
75,843
PlumX Metrics