EVIDENCE FROM INSIDER AND FIRM TRANSACTIONS

EVIDENCE FROM INSIDER AND FIRM TRANSACTIONS (2005)

by Itzhak Ben-david , Darren Roulstone

Datum	Value	Source
TITLE	EVIDENCE FROM INSIDER AND FIRM TRANSACTIONS	SVM HeaderParse 0.2
AUTHOR NAME	Itzhak Ben-david	SVM HeaderParse 0.2
AUTHOR AFFIL	Graduate School of Business; The University of Chicago	SVM HeaderParse 0.2
AUTHOR ADDR	5807 South Woodlawn Avenue; Chicago, IL 60637-1561	SVM HeaderParse 0.2
AUTHOR NAME	Darren Roulstone	SVM HeaderParse 0.2
AUTHOR AFFIL	; Graduate School of Business; The University of Chicago	SVM HeaderParse 0.2
AUTHOR ADDR	; 5807 South Woodlawn Avenue; Chicago, IL 60637-1561; Ball, John Cochrane, Jennifer Francis, Chris Hansen, Jack Hughes, Richard Mendenhall, Per Olsson, Lukasz; JEL Classification: G11, G12, G14, G32, G35	SVM HeaderParse 0.2
ABSTRACT	We examine how insiders and firms trade when arbitrage is limited. When arbitrage is costly (proxied by high idiosyncratic risk), insiders and firms earn higher absolute returns on their trades (insider trading, share repurchases, and seasoned equity offerings) in the following year. Furthermore, they initiate their trades following greater past price movements in the preceding year. These results are not driven by information asymmetry or firm size. Overall, our results are consistent with the idea that insiders and firms compete with outside arbitrageurs in exploiting mispricings and benefit when outside arbitrage is limited.	SVM HeaderParse 0.2
YEAR	2005	SVM HeaderParse 0.2
CITATIONS	39 found	ParsCit 1.0