EconPapers    
Economics at your fingertips  
 

Abnormal Returns From the Common Stock Investments of Members of the U.S. House of Representatives

Ziobrowski Alan J, Boyd James W, Cheng Ping and Ziobrowski Brigitte J.
Additional contact information
Ziobrowski Alan J: Georgia State University
Boyd James W: Lindenwood University
Cheng Ping: Florida Atlantic University
Ziobrowski Brigitte J.: Augusta State University

Business and Politics, 2011, vol. 13, issue 1, 1-24

Abstract: A previous study suggests that U.S. Senators trade common stock with a substantial informational advantage compared to ordinary investors and even corporate insiders. We apply precisely the same methods to test for abnormal returns from the common stock investments of Members of the U.S. House of Representatives. We measure abnormal returns for more than 16,000 common stock transactions made by approximately 300 House delegates from 1985 to 2001. Consistent with the study of Senatorial trading activity, we find stocks purchased by Representatives also earn significant positive abnormal returns (albeit considerably smaller returns). A portfolio that mimics the purchases of House Members beats the market by 55 basis points per month (approximately 6% annually).

Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.2202/1469-3569.1308 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:buspol:v:13:y:2011:i:1:n:4

Ordering information: This journal article can be ordered from
https://www.degruyter.com/view/j/bap

DOI: 10.2202/1469-3569.1308

Access Statistics for this article

Business and Politics is currently edited by Vinod K. Aggarwal

More articles in Business and Politics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2021-05-07
Handle: RePEc:bpj:buspol:v:13:y:2011:i:1:n:4