Bebchuk, Lucian Arye; Fershtman, Chaim - In: Journal of Financial and Quantitative Analysis 29 (1994) 01, pp. 1-14
The concern of this paper is with the effects of insider trading on ex ante managerial behavior. Specifically, the paper focuses on how insider trading affects insiders' choice among investment projects. Other things equal, insider trading leads insiders to choose riskier investment projects,...