Patterns in Insider Trading: Buyers Worsen, Sellers Improve

20 Pages Posted: 3 Feb 2022 Last revised: 15 Mar 2022

See all articles by Ann Marie Hibbert

Ann Marie Hibbert

West Virginia University - Department of Finance

Josh Schein

Global Key Advisors

Keonhi Lee

affiliation not provided to SSRN

Date Written: January 31, 2022

Abstract

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

Hibbert, Ann Marie and Schein, Josh and Lee, Keonhi, Patterns in Insider Trading: Buyers Worsen, Sellers Improve (January 31, 2022). Available at SSRN: https://ssrn.com/abstract=4021661 or http://dx.doi.org/10.2139/ssrn.4021661

Ann Marie Hibbert

West Virginia University - Department of Finance ( email )

Morgantown, WV 26506
United States

Josh Schein (Contact Author)

Global Key Advisors ( email )

649 Mission Street
San Francisco, CA 94105
United States

Keonhi Lee

affiliation not provided to SSRN

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