Insider Trading, Ownership Structure, and the Market Assessment of Corporate Sell‐Offs
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- Author(s): MARK HIRSCHEY, JANIS K. ZAIMA
- Published: Apr 30, 2012
- Pages: 971-980
- DOI: 10.1111/j.1540-6261.1989.tb02633.x
This paper finds that the generally favorable assessment of corporate sell‐off decisions is most apparent for closely held firms where insider net‐buy activity is prevalent during the prior six‐month period. This suggests that insider trader activity and ownership structure information are used by the market in the characterization of sell‐off decisions as favorable or unfavorable for investors.