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Nguyen, AN, Le, V, Gregoriou, A and Kernohan, D (2024) Insider Trading before Earnings News: The Role of Executive Pay Disparity. Journal of Risk and Financial Management, 17 (10). ISSN 1911-8066
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Insider Trading before Earnings News The Role of Executive Pay Disparity.pdf - Published Version Available under License Creative Commons Attribution. Download (3MB) | Preview |
Abstract
We investigate how executive pay disparity affects insider profits around earnings news. Our findings reveal that high pay disparity is linked to higher abnormal returns from insider purchases before positive news, suggesting insiders exploit good news for greater gains. Conversely, it is associated with lower abnormal returns from insider sales before negative news, indicating less benefit from such sales. These insights highlight the influence of pay disparity on insider trading and underscore the importance of understanding this dynamic to improve decision-making and reduce misuse of insider information.
| Item Type: | Article |
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| Subjects: | H Social Sciences > HF Commerce > HF5001 Business H Social Sciences > HG Finance |
| Divisions: | Liverpool Business School |
| Publisher: | MDPI |
| SWORD Depositor: | A Symplectic |
| Date Deposited: | 07 Oct 2024 13:28 |
| Last Modified: | 07 Oct 2024 13:30 |
| DOI or ID number: | 10.3390/jrfm17100453 |
| URI: | https://researchonline.ljmu.ac.uk/id/eprint/24432 |
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