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Insider Trading, Ownership Structure, and the Market Assessment of Corporate Sell‐Offs
Author(s) -
HIRSCHEY MARK,
ZAIMA JANIS K.
Publication year - 1989
Publication title -
the journal of finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 18.151
H-Index - 299
eISSN - 1540-6261
pISSN - 0022-1082
DOI - 10.1111/j.1540-6261.1989.tb02633.x
Subject(s) - insider , insider trading , business , accounting , inside information , monetary economics , finance , economics , political science , law
This paper finds that the generally favorable assessment of corporate sell‐off decisions is most apparent for closely held firms where insider net‐buy activity is prevalent during the prior six‐month period. This suggests that insider trader activity and ownership structure information are used by the market in the characterization of sell‐off decisions as favorable or unfavorable for investors.