Lockup expiration, insider selling and bid-ask spreads.

• Main Authors: Chandrasekhar Krishnamurti., Peh, Hwee Hwee.
• Other Authors: Nanyang Business School
• Format: Research Report
• Published: 2008
• Subjects: DRNTU::Business::Marketing
• Online Access: http://hdl.handle.net/10356/7035
• Institution: Nanyang Technological University

Contrary to our expectation that lockup expiration should result in an exacerbation of the information asymmetry problem faced by market makers, we find an improvement in secondary market liquidity in the post-expiration period. For the subset of firms with reported insider sales during the 10-day p...