We test a number of hypotheses to assess changes in director ownership during lockup periods. We find that these transactions are additional signalling devices. Our results also imply that they are contractual arrangements between directors and underwriters, as directors increase their holdings...

We find significant impact of insider trading activity on the long-run performance of IPOs. We show that, at the aggregate, insiders are net sellers in IPOs that generate positive long-run returns, while they are net buyers in those that underperform. When we analyse individual trades, we find...