Insider Trading and the Exploitation of Inside Information: Some Empirical Evidence Export

@article{citeulike:3253665, abstract = {Insider trading was found by previous research to yield excess return. This excess return was attributed to exploitation of inside information, leading to the inference that insiders possess and use superior information for their trading. This study examines the extent to which the abnormal return gained by insiders is realized by price changes arising from the disclosure of the trade itself or from subsequent disclosure of specific news about the company to which the insiders might be privy. The results from our sample indicate that a major part of the observed abnormal performance of insiders is likely to be due to price changes arising from the information revealed through the trades themselves. The findings also suggest that there is a low incidence of insider trading in anticipation of an impending new disclosure.}, author = {Givoly, Dan and Palmon, Dan}, citeulike-article-id = {3253665}, citeulike-linkout-0 = {http://dx.doi.org/10.2307/2352910}, citeulike-linkout-1 = {http://www.jstor.org/stable/2352910}, doi = {10.2307/2352910}, issn = {00219398}, journal = {The Journal of Business}, keywords = {analysis, beta, efficient, insider-trading, markets, of, rates, return, securities, statistical}, number = {1}, pages = {69--87}, posted-at = {2008-09-24 01:04:02}, priority = {2}, publisher = {The University of Chicago Press}, title = {Insider Trading and the Exploitation of Inside Information: Some Empirical Evidence}, url = {http://dx.doi.org/10.2307/2352910}, volume = {58}, year = {1985} }

TY - JOUR ID - citeulike:3253665 L3 - citeulike-article-id:3253665 N2 - Insider trading was found by previous research to yield excess return. This excess return was attributed to exploitation of inside information, leading to the inference that insiders possess and use superior information for their trading. This study examines the extent to which the abnormal return gained by insiders is realized by price changes arising from the disclosure of the trade itself or from subsequent disclosure of specific news about the company to which the insiders might be privy. The results from our sample indicate that a major part of the observed abnormal performance of insiders is likely to be due to price changes arising from the information revealed through the trades themselves. The findings also suggest that there is a low incidence of insider trading in anticipation of an impending new disclosure. IS - 1 JF - The Journal of Business SN - 00219398 EP - 87 TI - Insider Trading and the Exploitation of Inside Information: Some Empirical Evidence PB - The University of Chicago Press VL - 58 SP - 69 KW - analysis KW - beta KW - efficient KW - insider-trading KW - markets KW - of KW - rates KW - return KW - securities KW - statistical AU - Givoly, Dan AU - Palmon, Dan PY - 1985/// UR - http://dx.doi.org/10.2307/2352910 ER -