Purpose: This study aims to examine the information transfer effects of customers’ credit rating downgrades on supplier firms. Design/methodology/approach: In this study, the authors use suppliers’ cumulative abnormal returns around customers’ credit rating downgrade events to identify...

Diether, Lee, and Werner (2009) show that, in general, short sellers are contrarian in both contemporaneous and past returns and able to impressively predict future returns. This study examines these trading characteristics during both the trading day and the after-hours period. Interestingly,...

We provide evidence that some profitable insider stock selling is motivated by public information. At firms that disclose having concentrated sales relationships, insiders appear to sell their own stock profitably based on public information about their principal customers. Supplier insiders...