TY  - JOUR
AU  - Lakonishok,Josef
AU  - Lee,Inmoo
TI  - Are Insiders' Trades Informative?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6656
PY  - 1998
Y2  - July 1998
UR  - http://www.nber.org/papers/w6656
L1  - http://www.nber.org/papers/w6656.pdf
N1  - Author contact info:
Josef Lakonishok
University of Illinois, Department of Finance
College of Commerce & Business Administration
1206 S. Sixth Street
Champaign, IL 61820
Tel: 217/333-7185
Fax: 217/244-1151
E-Mail: jlakonishok@yahoo.com
AB  - We document insider trading activities of all companies listed on the NYSE, Amex, and Nasdaq exchanges during the 1975-1995 period. Insider trading is common, and in more than half the sample firms, there is at least some insider activity in a given year. In general, very little market movement is observed when insiders trade and when they report their trades to the SEC.  Insiders in aggregate are contrarian investors.  However, they predict market movements better than simple contrarian strategies.  Insiders also seem to be able to predict cross-sectional stock returns. The result, however, is driven by insider's ability to predict returns in smaller firms.  In addition, insider purchases are more informative than insider sales.
ER  -