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Board Of Directors Monitoring Of Ceo Insider Trading: Before And After The Sarbanes-Oxley Act, Alireza Ebrahim
Board Of Directors Monitoring Of Ceo Insider Trading: Before And After The Sarbanes-Oxley Act, Alireza Ebrahim
Doctoral Dissertations
This study investigates the impact monitoring by the board of directors had on the incidence of insider trading by firm chief executive officers (CEO) and on the abnormal returns they realized from 1996 to 2008. The study also analyzes the impact the Sarbanes-Oxley Act of 2002 (SOX) had on this relationship. The results show that CEOs earned significant abnormal returns on their buy and sell trades during this period. Furthermore, the results show that internal governance mechanisms such as board independence and CEO/Chairman duality reduce abnormal return and the intensity of CEOs' insider trades. The results are particularly significant for …