Are corporate spin-offs prone to insider trading?

• Main Authors: AUGUSTIN, Patrick, BRENNER, Menachem, HU, Jianfeng, SUBRAHMANYAM, Marti
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2020
• 主題: Asymmetric Information; CDS; Corporate Bonds; Insider Trading; Spinoffs; Market Microstructure; Options; TRACE; Business; Corporate Finance; Finance and Financial Management
• 在線閱讀: https://ink.library.smu.edu.sg/lkcsb_research/4476; https://ink.library.smu.edu.sg/context/lkcsb_research/article/5475/viewcontent/augustin_brenner_hu_subrahmanyam_av.pdf
• 機構: Singapore Management University

Despite abundant empirical evidence of informed trading ahead of major corporate events, no such evidence has been reported in the case of corporate spinoff (SP) announcements. This is surprising, as SP announcements are unexpected, and are also associated with a positive price jump in the parent co...