Why do insiders sell stocks after receiving options?

被引：0
|
作者：
Fang, Fei [1 ]
Tang, Zhenyang [1 ]
Veeren, Parianen [2 ]
机构：
[1] Clark Univ, Sch Business, 950 Main St, Worcester, MA 01610 USA
[2] Concordia Univ, Montreal, PQ, Canada
来源：
APPLIED ECONOMICS | 2024年
关键词：
Insider trading; option grants; hedging; risk reduction; D80; G10; G14; G34; G39; INFORMATION ASYMMETRY; NEWS RELEASES; COMPENSATION; VOLATILITY; TRADES; FIRMS; OPPORTUNISM; REPURCHASES; BANKRUPTCY; OWNERSHIP;
D O I：
10.1080/00036846.2024.2407555
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
We investigate corporate insiders' trading behaviour around option grants and find that they substantially increase their net sales after receiving options. The increase in insider net sales is positively associated with risk metrics such as idiosyncratic volatility and stock price crash risk, but not with proxies for insider opportunism. This suggests that the increase in net sales is likely driven by risk-reduction considerations rather than opportunistic trading based on inside information. Consistent with this view, we find that insider sales following option grants do not precede more negative returns.
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页数：15
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