| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 1006054 | Journal of Accounting and Public Policy | 2010 | 18 Pages |
Abstract
We find that insiders trade as if they exploit market underreaction to earnings news, buying (selling) after good (bad) earnings announcements when the price reaction to the announcement is low (high). We also find that insider trades attributable to public information about earnings and the price reaction generate abnormal returns. By demonstrating that managers spot market underreaction to earnings news, our results imply that managers are savvy about their company’s stock price.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Adam Kolasinski, Xu Li,