We document that African-American executives, on average, earn zero abnormal profits frominsider trades, in contrast to Asian-American and Caucasian executives who earn significantlypositive abnormal profits. We also find that these differences cannot be attributed to differencesin industry,...

Our evidence indicates that insiders' trades provide significant new information to market participants and they are incorporated more fully in stock prices as compared to non-insiders' trades. We find that market professionals do not front-run insiders' trades. Both insiders' purchases and...

We examine insider trades around the onset of the COVID-19 pandemic. Insiders purchased shares in record numbers after the stock market decline that began in late February 2020. We find that insider purchases were more pronounced for larger firms, value firms, firms with high levels of leverage...

We investigate whether short sellers contribute towards informational efficiency of market prices by trading on their private information or destabilize market prices by trading on rumors and false information. We do so by projecting a firm's short-selling activities on contemporaneous trading...

We investigate gender differences in insider trading behavior of senior corporate executives in the U.S. between 1975 and 2005. We find that, on average, both female and male executives make positive profits from insider trading, but males earn about twice as much as females; males also trade...

Americans have a tough time saving for their retirement. To make matters worse, the move from defined benefit (DB) to defined contribution plans (DC) over the years has required greater investor sophistication, discipline, and sound investment advice. Unfortunately, the current rules regarding...

We test the prediction of standard option pricing models that there should be no relation between option prices and past stock market movements. Using the Standard and Poor's 100 index options (OEX options) prices from 19831995, we document that OEX calls are significantly overvalued relative to...

The term insider trading refers to the legal stock transactions of the officers, directors, and large shareholders of a firm. Many investors believe that corporate insiders, informed about their firms' prospects, buy and sell their own firm's stock at favorable times, reaping significant...

We provide evidence of two variants of a dating game that entails picking a grant date ex post, that is, after the board's compensation decision is made: back-dating (picking a date before the board decision date), and forward-dating (waiting after the board decision date to observe the stock...