Faculty Scholarly Dissemination Grants
Do Insiders Actually Earn Abnormal Returns in the Long-Run?
Department
Finance Department
College
Seidman College of Business
Date Range
2012-2013
Disciplines
Business
Abstract
Numerous studies to date have addressed short-term returns earned by insiders with mixed results. Longer-term performance of executives and directors, however, has not been addressed in the literature. In this paper, we shed light on whether insiders actually earn abnormal returns in the long-run by deriving a more accurate and comprehensive measure of insiders realized returns. Key results from insiders dollar-weighted returns, which explicitly account for capital flow timing and magnitude from all SEC-reported insider transaction, show that insiders fail to earn significant returns in their overall portfolio during their tenure with the firm.
Conference Name
Financial Management Association
Conference Location
Atlanta, Georgia
ScholarWorks Citation
Simpson, Thuy and DeFusco, Richard, "Do Insiders Actually Earn Abnormal Returns in the Long-Run?" (2013). Faculty Scholarly Dissemination Grants. 1057.
https://scholarworks.gvsu.edu/fsdg/1057
