Do insider investment horizons contain information? Evidence from Australia
Key researchers
- Trung Lai Hoang
- MZ Hossain
- JY Tong
- JW Yang
Description
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 U.S. insider transactions and are predominately selling transactions. Our study provides useful insights for investors interested in detecting insider information and policymakers who strive to set more effective insider trading laws.