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Striking up with the in crowd: When option markets and insiders agree
We study whether the trading behavior of corporate insiders provides additional information to the market, after controlling for the public information integrated by sophisticated investors. First, we establish that insiders and option market participants trade in the same direction on average. Seco...
Autores principales: | , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Elsevier B.V.
2020
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7515598/ https://www.ncbi.nlm.nih.gov/pubmed/32994667 http://dx.doi.org/10.1016/j.jbankfin.2020.105963 |
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author | Gilstrap, Collin Petkevich, Alex Teterin, Pavel |
author_facet | Gilstrap, Collin Petkevich, Alex Teterin, Pavel |
author_sort | Gilstrap, Collin |
collection | PubMed |
description | We study whether the trading behavior of corporate insiders provides additional information to the market, after controlling for the public information integrated by sophisticated investors. First, we establish that insiders and option market participants trade in the same direction on average. Second, we show that insidertrading is relatively more informed when the option market sentiment is positive. The marginal information content of insider trades is higher for firms with higher levels of information asymmetry and during time periods when future economic conditions are less certain. |
format | Online Article Text |
id | pubmed-7515598 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2020 |
publisher | Elsevier B.V. |
record_format | MEDLINE/PubMed |
spelling | pubmed-75155982020-09-25 Striking up with the in crowd: When option markets and insiders agree Gilstrap, Collin Petkevich, Alex Teterin, Pavel J Bank Financ Article We study whether the trading behavior of corporate insiders provides additional information to the market, after controlling for the public information integrated by sophisticated investors. First, we establish that insiders and option market participants trade in the same direction on average. Second, we show that insidertrading is relatively more informed when the option market sentiment is positive. The marginal information content of insider trades is higher for firms with higher levels of information asymmetry and during time periods when future economic conditions are less certain. Elsevier B.V. 2020-11 2020-09-24 /pmc/articles/PMC7515598/ /pubmed/32994667 http://dx.doi.org/10.1016/j.jbankfin.2020.105963 Text en © 2020 Elsevier B.V. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active. |
spellingShingle | Article Gilstrap, Collin Petkevich, Alex Teterin, Pavel Striking up with the in crowd: When option markets and insiders agree |
title | Striking up with the in crowd: When option markets and insiders agree |
title_full | Striking up with the in crowd: When option markets and insiders agree |
title_fullStr | Striking up with the in crowd: When option markets and insiders agree |
title_full_unstemmed | Striking up with the in crowd: When option markets and insiders agree |
title_short | Striking up with the in crowd: When option markets and insiders agree |
title_sort | striking up with the in crowd: when option markets and insiders agree |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7515598/ https://www.ncbi.nlm.nih.gov/pubmed/32994667 http://dx.doi.org/10.1016/j.jbankfin.2020.105963 |
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