| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5087073 | Journal of Accounting and Economics | 2007 | 34 Pages |
Abstract
Evidence contrasting U.S. insider trades in high- and low-jeopardy periods and across firms at high and low risk for 10b-5 litigation indicates that insiders condition their trades on foreknowledge of price-relevant public disclosures, but avoid profitable trades when the jeopardy associated with such trades is high, such as immediately before earnings announcements. Insiders avoid profitable trades before quarterly earnings are announced and sell (buy) after good (bad) news earnings announcements. Insiders trade most heavily after earnings announcements and profit from foreknowledge of price-relevant information in the forthcoming Form 10-K or 10-Q filing.
Keywords
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Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Steven Huddart, Bin Ke, Charles Shi,