We study whether the trading behavior of corporate insiders provides additional in- formation to the market, after controlling for the public information integrated by sophisticated investors. First, we establish that insiders and option market participants trade in the same direction on...

Bank attention plays an important role in the pricing of corporate debt. Prior studies show that bank loans serve as certification and monitoring mechanisms that signal firm quality to bond markets. To separate continuous monitoring effects from certification effects, we use a measure of bank...

We show that the positive relation between firm-level cash-flow news and institutional ownership documented by Cohen (2002) is mostly driven by short-horizon investors. Short-term institutions trade to incorporate cash-flow related information into prices and potentially reduce under-reaction to...

We investigate the time-series patterns in industry return predictability conditioned on insider demand from 1996 to 2016. Current insider demand within an industry is positively associated with higher future industry returns. This relation is primarily driven by the buy side of insider trades...

This paper examines the relationship between managerial stock option holdings and the decision to announce a repurchase of the firm’s common stock. Managerial stock option holdings should reinforce the traditional undervaluation, free cash flow, and capital structure motives for...