Significant insider selling continues after a seasoned equity offering (SEO) is announced. This finding is consistent with earlier studies that equity offerings are undertaken by companies whose stock is overpriced. The study also suggests that the stock of firms that employ SEOs stays...

This study provides further evidence of earnings management around security offerings. We find positive and significant discretionary current accruals coincident with offerings of reverse LBOs. Issuers in the most aggressive quartile of earnings management have a one-year aftermarket return that...

Outlines previous research on the signalling power of stock repurchases and insider trading activity before stock repurchases. Examines data from a sample of self‐tender stock repurchases used by Comment and Jarrell (1991) to examine the relationship between managers’ trading activity prior...