Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 24, 2021 erstellt
Beschreibung:
Using a novel dataset containing U.S. companies’ regular board meeting schedules, we find evidence of informed trading by outside directors prior to board meetings. In the days prior to board meetings, when outside directors possess private information, they make purchases that yield higher abnormal returns and are larger than those made during periods distant from board meetings. We find no such pattern for inside directors who possess private information regardless of the timing of board meetings. Moreover, we find that these patterns are especially exhibited by trades made by more sophisticated directors, trades made prior to board meetings that result in news disclosures, and nonroutine trades. Our results suggest that outside directors trade based on information they obtain in preparation for board meetings