TY - JOUR
T1 - Corporate insider trading and extreme weather events: Evidence from tropical storms in the US
AU - Malik, Ihtisham A.
AU - Hodgson, Allan
AU - Faff, Robert W.
AU - Xiong, Zhengling
N1 - Publisher Copyright:
© 2025 Elsevier Inc.
PY - 2025/8
Y1 - 2025/8
N2 - This study examines whether and to what extent insiders exploit their informational advantage, surrounding extreme weather events. Adopting the US as our context, we find that public and private related tropical-storm information provides insiders with profitable buying opportunities, notably higher in the pre-landfall period and for executives. Our results suggest that insiders not only process meteorological forecasts more efficiently, but they also have superior private information advantages when compared to general investors who are inclined to negatively overreact to weather disasters.
AB - This study examines whether and to what extent insiders exploit their informational advantage, surrounding extreme weather events. Adopting the US as our context, we find that public and private related tropical-storm information provides insiders with profitable buying opportunities, notably higher in the pre-landfall period and for executives. Our results suggest that insiders not only process meteorological forecasts more efficiently, but they also have superior private information advantages when compared to general investors who are inclined to negatively overreact to weather disasters.
UR - http://www.scopus.com/inward/record.url?scp=105004393825&partnerID=8YFLogxK
U2 - 10.1016/j.irfa.2025.104283
DO - 10.1016/j.irfa.2025.104283
M3 - Article
AN - SCOPUS:105004393825
SN - 1057-5219
VL - 104
JO - International Review of Financial Analysis
JF - International Review of Financial Analysis
IS - Part A
M1 - 104283
ER -