No image available for this title

Text

Insider trading as a vehicle to appropriate rent from R&D

While most insider trading is routine and legal, investors still treat it as new information about the firm's prospects - they assume that trades reflect managers' attempts to profit from their private information. This article explores insider trading as a mechanism to appropriate rent from R&D advances. Stock price reactions to over 134,000 insider-trading events were analyzed and it was found that insider purchases generate larger positive stock price reactions from R&D-intensive firms. Investors seem to assume that managers use insider trading to appropriate rent from R&D breakthroughs. This paper discusses how shareholders may prefer this rent appropriation mechanism over other forms of compensation that directly reduce the firm's income..Printed Journal

Ketersediaan

Call NumberLocationAvailable
PSB lt.dasar - Pascasarjana1
Penerbit John Wiley & Sons.,
Edisi -
Subjek Statistical analysis
Stock prices
Insider trading
Research & development
R&D
studies
ISBN/ISSN 1432095
Klasifikasi -
Deskripsi Fisik -
Info Detail Spesifik -
Other Version/Related Tidak tersedia versi lain
Lampiran Berkas Tidak Ada Data