Abnormal Gains For Insiders Trading Prior To Unexpected Cor Export

@article{citeulike:3326485, abstract = {An examination is made of the potential for excess profitability of corporate insiders, who presumably acted on the basis of nonpublic information and traded their stock prior to the announcement of corporate news. The capital asset pricing model is used to compare the rates of return for each insider transaction with the risk-adjusted rates of return for the Standard \& Poor's 500 Composite Stock Index. Insider trading data were taken from Volumes 48 and 49 of The Official Summary of Securities Transactions and Holdings, which indicate insider trading activities during 1982 and 1983. Results of the examination indicate that company officials were able to avoid significant losses, as well as earn risk-adjusted excess returns, by trading their company's stock during the test period. These results were statistically significant for each of the 4 types of announcements examined at better than the 95\% level. In 3 of the 4 samples, the insider had returns with smaller dispersions than the market returns.}, author = {Moss and Jimmy, D. and Kohers and Theodor}, citeulike-article-id = {3326485}, journal = {Akron Business and Economic Review}, keywords = {analysis, annual, capm, comparative, effects, insider-trading, markets, of, prices, profitability, rates, reports, return, securities, statistical, stock, studies}, number = {1}, pages = {63--75}, posted-at = {2008-09-24 01:18:25}, priority = {2}, title = {Abnormal Gains For Insiders Trading Prior To Unexpected Cor}, volume = {21}, year = {1990} }

TY - JOUR ID - citeulike:3326485 L3 - citeulike-article-id:3326485 N2 - An examination is made of the potential for excess profitability of corporate insiders, who presumably acted on the basis of nonpublic information and traded their stock prior to the announcement of corporate news. The capital asset pricing model is used to compare the rates of return for each insider transaction with the risk-adjusted rates of return for the Standard & Poor's 500 Composite Stock Index. Insider trading data were taken from Volumes 48 and 49 of The Official Summary of Securities Transactions and Holdings, which indicate insider trading activities during 1982 and 1983. Results of the examination indicate that company officials were able to avoid significant losses, as well as earn risk-adjusted excess returns, by trading their company's stock during the test period. These results were statistically significant for each of the 4 types of announcements examined at better than the 95% level. In 3 of the 4 samples, the insider had returns with smaller dispersions than the market returns. IS - 1 JF - Akron Business and Economic Review EP - 75 TI - Abnormal Gains For Insiders Trading Prior To Unexpected Cor VL - 21 SP - 63 KW - analysis KW - annual KW - capm KW - comparative KW - effects KW - insider-trading KW - markets KW - of KW - prices KW - profitability KW - rates KW - reports KW - return KW - securities KW - statistical KW - stock KW - studies AU - Moss AU - Jimmy, D AU - Kohers AU - Theodor PY - 1990/// ER -