Research and publications
Some Insiders Are Indeed Smart Investors
Not all insiders are the same; some are more effective than others in processing the information they have access to, and invest their own wealth accordingly. We used a database with transactions from the U.K. market to identify insiders with superior market timing abilities. For the period 1994 to 2006 we showed that informative insider trades can be identified ex ante through certain characteristics of the transactions and the firm itself. Moreover, we showed how outsiders could benefit from this information.
Author(s):
Daniel Giamouridis, Manolis Liodakis, Andrew Moniz
Summary:
Not all insiders are the same; some are more effective than others in processing the information they have access to, and invest their own wealth accordingly. We used a database with transactions from the U.K. market to identify insiders with superior market timing abilities. For the period 1994 to 2006 we showed that informative insider trades can be identified ex ante through certain characteristics of the transactions and the firm itself. Moreover, we showed how outsiders could benefit from this information.
Register to download PDF
Register/Log in| Type : | Working paper |
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| Date : | 07/01/2008 |
| Keywords : |
Asset Allocation |
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