Insider Trading Around Earnings Announcements in Indian Firms
Posted: 17 Nov 2016
Date Written: November 16, 2016
Abstract
We use a modified event study method with variable event windows to explore whether firm insiders earn abnormal returns by trading before earning announcements. We also try to find out the variables that affect abnormal returns. We find that insiders earn abnormal returns from purchases but suffer losses from sales. These insights would go undetected if standard event study methods were employed. Finally, abnormal return depends on firm earnings, market capitalization, opportune number of days and type of insider transaction.
Keywords: Insider Trading, Event study method, Earnings announcements
JEL Classification: G14
Suggested Citation: Suggested Citation
Nanda, Sudipta and Barai, Parama, Insider Trading Around Earnings Announcements in Indian Firms (November 16, 2016). 8th Conference on Financial Markets and Corporate Governance (FMCG) 2017, Available at SSRN: https://ssrn.com/abstract=2870474
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