We demonstrate how insider trading analysis may benefit from textual analysis. We analyze reported insider trading behavior and explain the association between corporate as well as 3rd-party news announcements on directors' dealings activity. Previous approaches are extended by adding the...

This paper conjectures that insiders exploit their stock's mispricing after earnings announcements to make profitable trades. We design two sets of tests to provide evidence of insider trading on mispricing of their stock. First, insiders' purchases and sales are profitable both after positive...

We contribute to the M&A literature by characterizing the information available to insiders of selling firms during the pre-public takeover negotiations by analyzing insider trading during this period. We show that target insiders increase their net purchases only once bidders start signing...