Insider Trading and the Long-Run Performance of New Security Issues

CFA Digest ◽  
2000 ◽  
Vol 30 (4) ◽  
pp. 23-24
Author(s):  
Edgar J. Sullivan
2017 ◽  
Author(s):  
Paula Hill ◽  
Adriana Korczak ◽  
Shuo Wang
Keyword(s):  

2017 ◽  
Vol 9 (5) ◽  
pp. 58 ◽  
Author(s):  
Han-Ching Huang ◽  
Hsiu-Hsin Chiu

This paper investigates whether insider purchasing or selling before Season equity offerings (SEO) announcement have the impact on the cumulative abnormal returns (CAR) around SEO announcement in Taiwan. We find that there are negative announcement effects around the SEO announcement, which is not consistent with the argument that there are usually positive announcement effects around the SEO announcement in Taiwan. Moreover, long-run abnormal returns following SEOs are negative. Therefore, the motivation of SEO has changed from investment to overvaluation.. Although there is net buying prior to SEO announcement, the outside investors still regard SEO announcement as a signal of overvaluation instead of growth potential.


2011 ◽  
Author(s):  
Sinan Gokkaya ◽  
Michael J. Highfield
Keyword(s):  

2001 ◽  
Vol 36 (4) ◽  
pp. 415 ◽  
Author(s):  
Jonathan Clarke ◽  
Craig Dunbar ◽  
Kathleen M. Kahle

Author(s):  
Dagmar Linnertová ◽  
Oleg Deev

The aim of this paper is to investigate the causality between stock returns and insider open market transactions. The Dumitrescu-Hurlin (2012) heterogeneous approach to panel Granger causality is chosen to examine the relationship. The investigation is conducted on the 30 most traded German blue chips during the period of 2006–2014. The strong causality is revealed in the one-month period. Thus, stock returns may be used to predict future insider trading activity. The strong causality between stock returns and future insider buying and selling transactions is further confirmed with three out of four employed insider trading indices. The fact of the legal insider trade (either buy or sell) is more important than its volume. The reverse relationship is weak and valid only for longer time horizon of twelve months. Our results indicate that insider traders do not degrade the market efficiency in the long run.


1973 ◽  
Vol 47 (1) ◽  
pp. 72-94 ◽  
Author(s):  
Paul P. Abrahams

Professor Abrahams edits a record of a 1913 conversation between reformer Louis Brandeis and Thomas W. Lamont of J. P. Morgan & Co. In the wake of the Pujo investigation of the “money trust,” the two discussed the nature and extent of economic power wielded by investment bankers as well as some specific issues such as interlocking directorates, competitive bidding for security issues, and greater publicity about securities transactions. This document reflects the long-run, fundamental conflict between social critics fearful of the concentration of economic power in America and businessmen who disclaim power because they believe their behavior is controlled by objective business considerations which operate for the good of society as a whole.


Author(s):  
AjithKumar Reddy K ◽  
Darshith M P ◽  
Divya Megha H S ◽  
Omshree V ◽  
Sudhakara Reddy M

There are numerous web security dangers yet one of the significant web security issues is Phishing sites that focus on the human weaknesses instead of programming weaknesses. It tends to be depicted as the way toward acquiring the online clients to get their touchy data, for example, usernames and passwords. These days, phishing is one of the greatest regular web dangers as for the critical increase of the World Wide Web in volume over the long run. Phishing aggressors consistently utilize new (multi day) and complex procedures to beguile online clients. Thus, it is important that the counter phishing framework is ongoing and quick and furthermore influences from a shrewd phishing recognition arrangement. Here, we build up a very much established location framework which can adaptively coordinate with the changing climate and phishing sites. Our strategy is an on the web and highlight rich AI procedure to separate the phishing and real sites. Since the proposed approach removes various sorts of various highlights from URLs and pages source code, it is a totally customer side arrangement and doesn't need any assistance from the outsider. In this task, we offer a clever framework for finding phishing sites. The framework depends on an AI technique, explicitly managed learning. We have chosen the Logistic Regression strategy because of its great presentation in grouping. Our point is to acquire a better classifier by considering the attributes of phishing site and pick the better mix of them to prepare the grouped.


2010 ◽  
Author(s):  
Hafiz Hoque ◽  
Meziane Lasfer
Keyword(s):  

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