Why do insiders trade?: Evidence based on unique data on Swedish insiders
2009 (English)In: Journal of Accounting & Economics, ISSN 0165-4101, E-ISSN 1879-1980, Vol. 48, no 1, 37-53 p.Article in journal (Refereed) Published
In this paper, we examine if corporate insiders have other motives for trading besides exploitation of private information. Our results show that insiders’ portfolio re- balancing objectives, tax considerations and behavioral biases play the most important role in their trading decisions. We also find that insiders who have allocated a great (small) proportion of their wealth to insider stock sell more (less) before bad news earnings disclosures. Finally, insider selling is informative for future returns among those insiders who have the greatest proportion of wealth allocated to insider stocks.
Place, publisher, year, edition, pages
Elsevier , 2009. Vol. 48, no 1, 37-53 p.
Insider trading, Behavioral finance, Stock market
Business Administration Economics
Research subject Economics; Business Studies
IdentifiersURN: urn:nbn:se:umu:diva-44236DOI: 10.1016/j.jacceco.2009.06.002OAI: oai:DiVA.org:umu-44236DiVA: diva2:419519