A Comparison of the Financial Profiles of Firms That Experienced Heavy Inside Trading During A Period of Economic Recession With Those That Experienced Heavy Inside Trading In An Economic Recovery

摘要

Firms that have experienced heavy insider trading have been of interest to financial analysts, academicians, and investors for years. Company insiders do not always buy during periods of market optimism, or sell in times of market pessimism. Often serious investors, investment counselors, and academicians have followed the reporting of the legal buying and selling of shares by those inside the firm. Regardless of the interest of investors in inside trading, there have been thus far, no studies that sought to compare and identify the differences in the financial variables that determine value, between firms that have experienced heavy insider trading ( buying and selling) during a period economic recession with those firms during an economic recovery. The period 2001 - 2004 provides researchers with the opportunity to gather data from both a recessionary and a recovery period.