Informed Traders: Linking Legal Insider Trading and Share Repurchases

Jan/Feb 2012 FAJ cover thumbnail
  1. Poor
  2. Satisfactory
  3. Good
  4. Very Good
  5. Excellent

Be the first. (0 ratings)

Log in to rate this article.

Financial Analysts Journal
January/February 2012 | Vol. 68 | No. 1 | 14 pages
Source: CFA Institute
Konan Chan David L. Ikenberry Inmoo Lee Yanzhi (Andrew) Wang

US$0.00 Member | US$0.00 Candidate | US$15.00 Nonmember

Read

Abstract

Logic suggests that a link might exist between insider trades and share repurchases because of their potential to signal mispricing when market prices deviate from fair value; both events emanate from essentially the same set of decision makers. Using the overall repurchase sample, adding insider-trading information is generally not helpful. For “value” buyback companies, however, where perceived mispricing may be a more important factor, insider trading provides a strong complement to the repurchase signal.

View more information

Topics
Equity Investments
    :
  • Equity Market Valuation and Return Analysis
Credits · About the CE Program
1 CE (including 0 SER) Manage CE Credits

People who viewed this page also viewed:

Publications

Top Hedge Fund Investors: Stories, Strategies, and Advice

This book chronicles top hedge fund investors that played key roles in the industry, including substantial information on manager sourcing, ... More

Loading ...