Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 14, 2022 erstellt
Description:
The monthly value of insider trades increases over 200% in firms headquartered in counties with a climate disaster. Climate-induced insider trading holds in general but is stronger when investors are distracted and less prevalent when insiders face higher litigation risk. Firm fundamentals decline following disasters, and insiders benefit by selling prior to this decline being priced. Insiders living in disaster counties do not trade more than those in unaffected counties, which indicates against a personal liquidity motivation. Our paper documents a new way through which climate impacts investor behavior and financial markets