Do insider investment horizons contain information? Evidence from Australia

Lai T. Hoang, Zakir Hossain, Jamie Y. Tong, Joey W. Yang

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Abstract

We examine the information content of insiders' investment horizon using a large sample of Australian insider trades from 2002 to 2021. In contrast to the finding of Akbas et al. (2020) in the U.S. context, we find that, while Australian insiders are predictive of future abnormal returns, their trading horizon contains little relevant information. We further find that Australian insider trades are dominated by purchasing transactions, which is contrary to the U.S. insider transactions that are predominately selling transactions. Our study provides useful insights for investors who are interested in detecting insiders' information, and for policy makers who strive for setting more effective insider trading laws.
Original languageEnglish
Article number101946
Number of pages8
JournalPacific Basin Finance Journal
Volume79
Early online date25 Jan 2023
DOIs
Publication statusPublished - Jun 2023

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© 2023, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/

Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.

This document is the author’s post-print version, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it.

Keywords

  • Australian insiders
  • Investment horizons
  • Information
  • Legal environment

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

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