Korczak, Adriana; Korczak, Piotr; Lasfer, Meziane - School of Economics, Finance and Management, University … - 2009
We argue that insiders' decisions to trade in short windows before news announcements are likely to result from a trade-off between the incentives to capitalize on the foreknowledge of the disclosure and the risk of regulatory scrutiny and lost reputation. We provide evidence that insider buying...