Insider Investment Horizon

• 成果类型: Article
• 署名作者: Akbas, Ferhat; Jiang, Chao; Koch, Paul D.
• 署名单位: University of Illinois System; University of Illinois Chicago; University of Illinois Chicago Hospital; University of South Carolina System; University of South Carolina Columbia; Iowa State University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12878
• 发表日期: 2020
• 页码: 1579-1627
• 关键词: research-and-development; institutional investors; information asymmetry; corporate governance; ceo overconfidence; Trading profits; earnings; MARKET; trades; experiences

摘要

We examine the relation between insiders' investment horizon and the information content of their trades with respect to future stock returns. We conjecture that an insider's investment horizon establishes a benchmark for expected patterns of continued trading behavior and thus helps identify unexpected insider trades, which should be more informative in efficient markets. Consistent with this conjecture, the trades of short-horizon insiders are both more unexpected and more informed, on average, than those of long-horizon insiders. Short-horizon insiders and their firms also tend to display characteristics that are associated with a greater focus on short-termism.