This paper examines insider trading around first-time debt covenant violation disclosures in SEC filings, and is interesting from a research and regulatory standpoint for three reasons – delay and infrequency of a first-time disclosure, lack of attention to covenant disclosures by regulators,...

This paper documents significant trading by insiders around a first-time debt covenant violation disclosure in an SEC filing and is interesting from a research and regulatory standpoint because of three considerations - delay and relative infrequency of new covenant violation disclosures lack of...

type="main" <p>This study asks whether insider trading associates with an information advantage around first-time debt covenant violation disclosures in SEC filings, which potentially results from early access to information about the debt covenant violation disclosure. We document two results....</p>