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- Title
Insider trading in multinational firms.
- Authors
Alldredge, Dallin M.; Blank, D. Brian
- Abstract
We explore insider trading at multinational firms and find multinational firm insiders make larger trades followed by larger abnormal returns relative to those at domestic firms. Multinational firm insiders profitably purchase underpriced, value stocks with low past returns. They trade more profitably, not only because of market pricing opportunities, but also because of the advantageous timing of informed trades before earnings announcements. Insider trading profits are highest at multinational firms with foreign sales in regions culturally and linguistically distinct from the United States. These findings are consistent with opportunistic insiders strategically profiting from difficult to process foreign information.
- Subjects
UNITED States; INSIDER trading in securities; EARNINGS announcements; ABNORMAL returns; VALUE investing (Finance); BUSINESS enterprises; MARKET pricing; TRANSFER pricing
- Publication
European Financial Management, 2024, Vol 30, Issue 1, p314
- ISSN
1354-7798
- Publication type
Article
- DOI
10.1111/eufm.12415