Lambe, Brendan;
Li, Zhiyong;
Qin, Weiping;
(2022)
Uncertain times and the insider perspective.
International Review of Financial Analysis
, 81
, Article 102138. 10.1016/j.irfa.2022.102138.
Preview |
Text
Insider trading final.pdf - Accepted Version Download (938kB) | Preview |
Abstract
This paper examines insiders' informational privilege by studying the nexus between aggregated self-reported insider trades and Economic Policy Uncertainty (EPU). We demonstrate that firm insiders act in response to the first signs of uncertainty as it appears in the media, and high-ranked managers, such as CEOs and CFOs, react more promptly than other insiders. Our findings further support the idea that insiders' indirect informational advantages allow them to interpret the significance of public information for cash flows more accurately in their own companies. Our study is the first to examine insiders' behavior using pure public information; it is also the first to exclude the influence of private information completely. We also consider various measures of EPU, including global and categorical indices representing economic, political uncertainty, while taking the financial crisis period into account.
| Type: | Article |
|---|---|
| Title: | Uncertain times and the insider perspective |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1016/j.irfa.2022.102138 |
| Publisher version: | https://doi.org/10.1016/j.irfa.2022.102138 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher's terms and conditions. |
| Keywords: | Informational privilege, Insider trading, Economic policy uncertainty, Public information |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > School of Life and Medical Sciences |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10212573 |
Archive Staff Only
 |
View Item |
