This paper examines whether insider trades reflect the insiders' superior knowledge of future cash flow realizations, as proxied by the firm's future return and earnings performance. We find strong evidence that insider trades are positively associated with the firm's future earnings...

We investigate the extent to which the trading and trade-generating activities of three informed market participants -- financial analysts, institutional investors, and insiders -- influence the relative amount of firm-specific, industry-level and market-level information impounded into stock...

In this paper, we explore an insiders' decision to trade or not trade on the basis of future earnings information. Consistent with litigation, political, and reputation-related costs shaping insider-trading decisions, we find that relations between insider trading decisions and next year's...