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- Corporate Insiders; Insider Trading; SEC (Securities & Exchange Commission); Legal and Illegal Conduct (1)
- Economic policy (1)
- Institutional investors; corporate finance; corporate bankruptcy; stocks; organizational performance; stockholders; asset acquisitions; bankruptcies; bankrupt; net buyers (1)
Articles 1 - 2 of 2
Full-Text Articles in Business
The Discreet Trader, Seth Wing
The Discreet Trader, Seth Wing
Honors Projects in Finance
This paper examines insider trading, specifically trades by corporate insiders around quarterly earnings announcements. Announcements were broken up into three categories: earnings above analyst expectations, earnings below expectations, and earnings in line with expectations. Trade data was collected from the thirty companies of the Dow Jones Industrial Average from 2012-’13. The trades were sorted by purchases and sales by date and analyzed with the earnings report of which the trades were made. Only trades in the interval from twenty days before the announcement date to twenty days after the announcement date were considered. The prediction was that corporate insiders would …
What Do Institutional Investors Know And Act On Before Almost Everyone Else: Evidence From Corporate Bankruptcies, Elena Precourt, Henry Oppenheimer
What Do Institutional Investors Know And Act On Before Almost Everyone Else: Evidence From Corporate Bankruptcies, Elena Precourt, Henry Oppenheimer
Accounting Department Faculty Journal Articles
We analyze investment behavior of institutional managers who hold and trade shares of firms that file for bankruptcy. We find that during the five-year period preceding a bankruptcy filing, institutional investors (except those managing investment companies) are net buyers with a positive abnormal net number of shares traded during the period. Institutional managers start to sell shares of bankrupt firms sooner in some firms than in others; these earlier sales are of smaller firms with weaker operating performance, and lower equity risk. We do not find evidence that institutional stockholders trade strategically and avoid material price declines before they occur.