Informed Options Trading Prior to Bankruptcy Filings

Prior evidence on pre-bankruptcy filing informed trading is mixed. The inconclusive findings might result from the sole focus on stock trading. We reassess the presence of pre-filing informed and insider trades by examining the information content of options trading before bankruptcy announcements. We find that bankruptcy filing returns are not significantly related to pre-filing insider stock trading. However, filing returns are significantly negatively related to pre-filing insider and informed options trading. The informational content of options trading reduces with options illiquidity and the amount of information impounded into pre-filing stock prices

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Year of publication:	2019
Authors:	Ge, Li
Other Persons:	Hu, Jianfeng (contributor) ; Humphery-Jenner, Mark (contributor) ; Lin, Tse-Chun (contributor)
Publisher:	[2019]: [S.l.] : SSRN
Subject:	Insolvenz \| Insolvency \| Optionsgeschäft \| Option trading

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Extent:	1 Online-Ressource (47 p)
Series:	28th Australasian Finance and Banking Conference
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 9, 2019 erstellt
Other identifiers:	10.2139/ssrn.2302888 [DOI]
Classification:	G12 - Asset Pricing ; G14 - Information and Market Efficiency; Event Studies ; G33 - Bankruptcy; Liquidation
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012905268