The macroeconomic policy environment affects the internal governance of microenterprises, which may provide opportunities for management to benefit from stock sales while decreasing its motivation to manipulate stock transactions. Using a sample of Chinese A-share listed companies from 2007 to...

Equity pay has been the primary component of managerial compensation packages at US public firms since the early 1990s. Using a comprehensive sample of top executives from 1992-2020, we estimate to what extent they trade firm equity held in their portfolios to neutralize increments in ownership...

This paper examines whether share repurchase announcements are signals of undervaluation or insiders’ opportunistic activities by investigating insider trading patterns surrounding buyback announcements in Vietnam. Consistent with the insider opportunism hypothesis, we show that insiders are...

Two activists with correlated private positions in a firm's stock, trade sequentially before simultaneously exerting effort that determines the firm's value. We document the existence of a novel linear equilibrium in which an activist's trades have positive sensitivity to her block size, but...

We analyze how informed investors trade in the options market ahead of corporate news when they receive private, but noisy, information about the timing and impact of these announcements on stock prices. We propose a framework that ranks options trading strategies (option type, maturity, and...

Bankers are directors of Federal Reserve Banks. I document that a) banker directors of the New York Fed attend more meetings about the financial sector; b) elections for Reserve Bank directorships are more contested for bankers, but less so for large banks and American Banking Association...

Correct information about the expected dividends and their probabilities is also available. METHOD: In two experiments, totaling34 Smith-Suchanek-Williams type double-auction continuous experimental markets (238 subjects), participants were exposed to misinformation regarding dividend payouts in...

We analyze how informed investors trade in the options market ahead of corporate news when they receive private, but noisy, information about the timing and impact of these announcements on stock prices. We propose a framework that ranks options trading strategies (option type, maturity, and...

Two activists with correlated private positions in a firm's stock, trade sequentially before simultaneously exerting effort that determines the firm's value. We document the existence of a novel linear equilibrium in which an activist's trades have positive sensitivity to her block size, but...

Equity pay has been the primary component of managerial compensation packages at US public firms since the early 1990s. Using a comprehensive sample of top executives from 1992-2020, we estimate to what extent they trade firm equity held in their portfolios to neutralize increments in ownership...

In 2012 President Obama signed into law the US Stop Trading On Congressional Knowledge (STOCK) Act to prohibit federal politicians from trading stocks, based on private information, for personal gain with an accompanying provision that they make public their transactions within 45 days of...

This paper investigates market reaction to, and insiders’ trading around, CEO succession events. Investors seem to react negatively to CEO resignation, but not to CEO retirement or death. Further, while investors do not react negatively to CEO turnover in high effective firms, their reaction...

Disclosure of insider trading are ambiguous pieces of information, as liquidity traders may not assess whether the trades are motivated by significant privileged information related to the true share value. This paper establishes an algorithm, relying on Bayesian inference that represents the...

Insider trading is regarded as an unethical practice that promotes insiders’ self-interests at the expense of uninformed traders. We investigate the association between a chief executive officer (CEO)’s marital status and her tendency to profit from insider trading. We argue that marriage...

We show that aggregate insider trading (AIT) in the S&P 500 is a reliable predictor of the U.S. equity premium, while AIT outside the S&P 500 seems to be uninformative. Aggregate trading of S&P 500 insiders outperforms a broad set of well-established predictors considering in- and out-of-sample...

Blockchain front-running involves multiple agents, other than the legitimate agent, claiming a payment from performing a contract. It arises because of the public nature of blockchain transactions and potential network congestion. This paper notes that disputes over payments are similar to...

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...

This study examines the insider trading profitability of the United State (US) firms, during calendar time windows that capture tropical storms over the period 1988-2017. Using event study and multivariate regression analyses, we analyze cumulative abnormal returns following insider trades as a...

Corporate insiders face substantial restrictions on stock sales, but many have viewed receiving tax deductions from charitable donations of stock holdings as an attractive alternative. In fact, empirical evidence consistently indicates that executives even make use of their private information...

We investigate whether implied volatility comovements reflect the degree to which a firm’s private information is informative about future macroeconomic news. We compute IVC, the comovement of the implied volatilities between the firm and the aggregate market. IVC measures the extent to which...

This paper provides evidence on the financial consequences of insider trading for outsiders. We collect a novel data set that contains all equity trades of all corporate insiders and outsiders in an era without restrictions on informed trading. These data features allow us to study the...

The monthly value of insider trades increases over 200% in firms headquartered in counties with a climate disaster. Climate-induced insider trading holds in general but is stronger when investors are distracted and less prevalent when insiders face higher litigation risk. Firm fundamentals...

In 2011, Peter Schweizer published a book, Throw Them All Out, in which he exposed some questionable means by which politicians manage to increase their personal wealth 50 percent faster than the average American. Schweizer suggested that trading on material nonpublic information is one method...

I model the investors' costly information acquisition behaviours with strategic communication of asymmetric information in financial markets. I extend the dynamic insider trading model based on Kyle(Econometrica 53 (1985) 1315) to allow for costly, unobservable information acquisition, assuming...

To enforce insider trading laws, financial regulators require top executives in listed companies to make their own-company trades public. One implication of this regulatory focus is that executives below the top fly under the radar. We use register data from Norway to examine whether executives...

This working paper was written by Julan Du (Chinese University of Hong Kong) and Shang-Jin Wei (International Monetary Fund and Brookings Institution).This paper studies the role of insider trading in explaining cross-country difference in stock market volatility. It introduces a new (albeit...

We propose the Volume Coefficient of Variation (VCV) as a new and simple measure of information asymmetry in security markets. We use a microstructure model to demonstrate that VCV is strictly increasing in the proportion of informed trade. Empirically, we obtain VCV from daily observations of...

A minichannel based cooling system is highly effective in designing the thermal management devices for the cooling of electronic components due to its high heat transfer performance and miniaturization. Minichannel can dissipate more amount of heat under two phase flow with sharp cornered edges....

This paper formalizes a novel form of corporate insider trading based on non-insider information. In our model, insiders make trading decisions in anticipation of activist intervention. Because insiders have access to private information about firm fundamentals, they can better separate...

We examine whether and how insiders trade on government subsidies, a major instrument through which the governments intervene in the economy. Using a novel dataset of government subsidies of Chinese listed firms, we find that net insider purchase increases significantly during the month of...

We construct and analyze a new data set on U.S. corporate ownership to study how the inclusion of blockholders' and corporate insiders' holdings affects the measurement of common ownership among America's largest publicly traded firms. Including blockholders’ and insiders’ holdings reveals...