Corporate Governance and Opportunistic Insider Trade

• Main Authors: Gunny, Katherine, KE, Bin, Zhang, Tracey Chunqi
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2008
• Subjects: Insider Trade; Managerial Opportunism; Managerial Agency Costs; Corporate Governance; Accounting; Business Law, Public Responsibility, and Ethics; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/soa_research/93
• Institution: Singapore Management University

Prior research provides evidence that insiders generate significant abnormal returns by trading on private information. We use the cross sectional variations of insidersÆ ability to trade opportunistically to gauge managerial opportunism at the company level. Using U.S. top executivesÆ insider trade...