Do insider investment horizons contain information? Evidence from Australia

Lai T. Hoang; Zakir Hossain; Jamie Y.  Tong; Joye W. Yang

doi:10.1016/j.pacfin.2023.101946

Do insider investment horizons contain information? Evidence from Australia

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

Research output: Contribution to journal › Article › peer-review

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 language	English
Article number	101946
Number of pages	8
Journal	Pacific Basin Finance Journal
Volume	79
Early online date	25 Jan 2023
DOIs	https://doi.org/10.1016/j.pacfin.2023.101946
Publication status	E-pub ahead of print - 25 Jan 2023

Bibliographical note

Publisher Copyright:
© 2023

Keywords

Australian insiders
Investment horizons
Information
Legal environment

ASJC Scopus subject areas

Economics, Econometrics and Finance(all)

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10.1016/j.pacfin.2023.101946

Cite this

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title = "Do insider investment horizons contain information? Evidence from Australia",

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.",

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AU - Yang, Joye W.

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N2 - 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.

AB - 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.

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Do insider investment horizons contain information? Evidence from Australia

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

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