Do Brokers of Insiders Tip Other Clients?

• 成果类型: Article
• 署名作者: McNally, William J.; Shkilko, Andriy; Smith, Brian F.
• 署名单位: Wilfrid Laurier University
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2015.2287
• 发表日期: 2017
• 页码: 317-332
• 关键词: Insider trading; Broker; Tipping

摘要

We examine trading activity around insider transactions on the Toronto Stock Exchange and find evidence that some traders mimic insider positions. Our unique data set allows us to establish a direct connection between insiders, their brokerages, and the brokerages' other clients. The findings are consistent with the possibility that some brokerages tip their clients about insider trades. Insiders in our sample have good timing; returns are usually positive (negative) after insider purchases (sales). Insiders' good timing translates to the mimicking transactions, which appear to be profitable net of trading costs. Evidence consistent with tipping is observed mainly for smaller independent brokerages.