Stock Market Anomalies: What Can We Learn from Repurchases and Insider Trading?

John E. Core, Wayne R. Guay, Scott A. Richardson and Rodrigo S. Verdi ()
Additional contact information
John E. Core: University of Pennsylvania
Wayne R. Guay: University of Pennsylvania
Scott A. Richardson: University of Pennsylvania
Rodrigo S. Verdi: University of Pennsylvania

Review of Accounting Studies, 2006, vol. 11, issue 1, No 3, 49-70

Abstract: Abstract We examine whether managers’ trading decisions (both at a firm and personal level) are correlated with trading strategies suggested by the operating accruals and the post-earnings announcement drift (SUE) anomalies. We discuss advantages and disadvantages of the use of managerial trading activity to infer managers’ private valuation about their own securities. Our results provide corroborative evidence for the accruals anomaly, i.e., managers’ repurchase and insider trading behavior varies consistently with the information underlying the operating accruals trading strategy. On the other hand, we do not find corroborative evidence for the SUE anomaly.

Keywords: Anomalies; Accruals; Post-earnings announcement drift (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11142-006-6395-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:reaccs:v:11:y:2006:i:1:d:10.1007_s11142-006-6395-y

Ordering information: This journal article can be ordered from
http://www.springer.com/accounting/journal/11142

DOI: 10.1007/s11142-006-6395-y

Access Statistics for this article

Review of Accounting Studies is currently edited by Paul Fischer

More articles in Review of Accounting Studies from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().