Decoding Inside Information
Published in National Bureau of Economic Research • Oct 1, 2010
NobleIDNI7P13W32R31S22
Authors:,,
Lauren Cohen
Christopher J. Malloy
Łukasz Pomorski
Abstract
Using a simple empirical strategy, we decode the information in insider trades. Exploiting the fact that insiders trade for a variety of reasons, we show that there is predictable, identifiable "routine" insider trading that is not informative for the future of firms. Stripping away these routine tr...
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