Overreaction and Insider Trading: Evidence from Growth and Value Portfolios

  • Author(s): Michael S. Rozeff, Mir A. Zaman
  • Published: Dec 17, 2002
  • Pages: 701-716
  • DOI: 10.1111/0022-1082.275500

Insider transactions are not random across growth and value stocks. We find that insider buying climbs as stocks change from growth to value categories. Insider buying also is greater after low stock returns, and lower after high stock returns. These findings are consistent with a version of overreaction which says that prices of value stocks tend to lie below fundamental values, and prices of growth stocks tend to lie above fundamental values.

Jump to menu

Main Navigation

Search the Site / Journal

Search Keywords

Search Tips

Members' Login

Credentials

Members' Options

Site Footer

View Mobile Version