Inside brokers

• 成果类型: Article
• 署名作者: Li, Frank Weikai; Mukherjee, Abhiroop; Sen, Rik
• 署名单位: Singapore Management University; Hong Kong University of Science & Technology; University of New South Wales Sydney
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.05.029
• 发表日期: 2021
• 页码: 1096-1118
• 关键词: Analysts; Mutual funds; INSIDERS; BROKERS; information transmission

摘要

We identify the broker each corporate insider trades through, and find that analysts and mutual fund managers affiliated with such inside brokers have a substantial information advantage on the insider's firm. Affiliated analysts issue more accurate earnings forecasts, and affiliated mutual funds trade the insider's stock more profitably than their peers, fol-lowing insider trades through their brokerage. Notably, this advantage persists well after these insider trades are publicly disclosed. Our results challenge the prevalent perception that information asymmetry arising from insider trading is acute only before trade dis-closure, and suggest that brokers facilitating these trades are in a position to exploit this asymmetry. (c) 2021 Elsevier B.V. All rights reserved.