Patterns in Insider Trading: Buyers Worsen, Sellers Improve
20 Pages Posted: 3 Feb 2022 Last revised: 15 Mar 2022
Date Written: January 31, 2022
We consider the novel question of whether the trading performance of an individual insider changes over time. We find that buying performance declines steadily and markedly as an insider executes successively more purchase transactions; conversely, insider returns slightly improve over successive sales. Our findings add an important perspective to a well-studied area of research that, until now, has relied upon the unexamined assumption that the trading results of an insider remain constant over time.
Keywords: Insider Trading
JEL Classification: C22, C50, G02, G11, G14
Suggested Citation: Suggested Citation