TY - JOUR
T1 - Evidence of strategic information uncertainty around opportunistic insider purchases
AU - Rahman, Dewan
AU - Oliver, Barry
AU - Faff, Robert
N1 - Funding Information:
This work was supported by the Government of Australia and the University of Queensland Business School in Australia.
Publisher Copyright:
© 2020
Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.
PY - 2020/8
Y1 - 2020/8
N2 - We investigate whether CEOs strategically increase information uncertainty surrounding their insider stock purchases. We find that in the month before and during CEO stock purchases, information uncertainty in their news releases increases, which correlates with lower stock prices. This finding is not evident in the month after insider purchases and thus suggests CEOs’ strategic behavior. Our key findings of strategic information uncertainty are confirmed using multi-faceted fixed effects regressions, a quasi-natural experimental design, and numerous other robustness checks.
AB - We investigate whether CEOs strategically increase information uncertainty surrounding their insider stock purchases. We find that in the month before and during CEO stock purchases, information uncertainty in their news releases increases, which correlates with lower stock prices. This finding is not evident in the month after insider purchases and thus suggests CEOs’ strategic behavior. Our key findings of strategic information uncertainty are confirmed using multi-faceted fixed effects regressions, a quasi-natural experimental design, and numerous other robustness checks.
UR - http://www.scopus.com/inward/record.url?scp=85085601590&partnerID=8YFLogxK
U2 - 10.1016/j.jbankfin.2020.105821
DO - 10.1016/j.jbankfin.2020.105821
M3 - Article
AN - SCOPUS:85085601590
SN - 0378-4266
VL - 117
JO - Journal of Banking and Finance
JF - Journal of Banking and Finance
M1 - 105821
ER -