Do insider investment horizons contain information? Evidence from Australia

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

Monash University
University of Queensland
University of Western Australia

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

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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 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	Published - Jun 2023

Bibliographical note

© 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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10.1016/j.pacfin.2023.101946

Hossain2023AAMAccepted author manuscript, 804 KBLicence: CC BY-NC-ND

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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note = "{\textcopyright} 2023, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/ Copyright {\textcopyright} 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{\textquoteright}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. ",

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N1 - © 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.

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Do insider investment horizons contain information? Evidence from Australia

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

Access to Document

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