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Evidence on Quasi-Private Information and Insider Trading

22 Pages Posted: 30 Sep 2003 Last revised: 21 Apr 2014

Martha L. Carter

Institutional Shareholder Services

Sattar Mansi

Virginia Tech

David M. Reeb

National University of Singapore

Multiple version iconThere are 3 versions of this paper

Date Written: March 24, 2009


We investigated the informational content of corporate insider buying activity and concluded that the market impact of insider transactions varies with the length of interval between insider buy transactions and the disclosure of information to the public. Analysis of a sample obtained from the Washington Services Insider Trade database indicates that (1) the informational content of insider transactions leaks out prior to the U.S. SEC announcement, (2) information leakage is positively associated with the length of the interval between the insider buying activity and the SEC announcement, (3) information leakage for CEOs and other officers differs only marginally, and (4) those insiders with the longest delay in reporting have the greatest total impact on stock prices. Our findings suggest that insiders are able to use their disclosure timing to manipulate the stock-price impact of their buying activity.

Keywords: Portfolio Management, equity strategies, Portfolio Management, trading and execution

Suggested Citation

Carter, Martha L. and Mansi, Sattar and Reeb, David M., Evidence on Quasi-Private Information and Insider Trading (March 24, 2009). Financial Analysts Journal, Vol. 59, No. 3, May/June 2003. Available at SSRN:

Martha L. Carter (Contact Author)

Institutional Shareholder Services ( email )

2099 Gaither Road, Suite 501
Rockville, MD 20850
United States

Sattar Mansi

Virginia Tech ( email )

David M. Reeb

National University of Singapore ( email )

Mochtar Riady Building
15 Kent Ridge Drive
Singapore, 119245


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