We examine the long run stock performance of IPO firms following lockup expiration when insiders are allowed to release their shares from the perspectives of two hypotheses. The portfolio diversification hypothesis notes that corporate insiders may wish to diversify their portfolios and sell...

The long-run performance of equity securities subsequent to announcements of open market repurchases (OMR) remains a contentious topic. In this paper we propose the “dichotomous expectations hypothesis” which posits that insider trading following share repurchase announcements reveals...