JOURNAL ARTICLE

Insider trading in multinational firms.

  • Published In: European Financial Management, 2024, v. 30, n. 1. P. 314 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Alldredge, Dallin M.; Blank, D. Brian 3 of 3

Abstract

We explore insider trading at multinational firms and find multinational firm insiders make larger trades followed by larger abnormal returns relative to those at domestic firms. Multinational firm insiders profitably purchase underpriced, value stocks with low past returns. They trade more profitably, not only because of market pricing opportunities, but also because of the advantageous timing of informed trades before earnings announcements. Insider trading profits are highest at multinational firms with foreign sales in regions culturally and linguistically distinct from the United States. These findings are consistent with opportunistic insiders strategically profiting from difficult to process foreign information. [ABSTRACT FROM AUTHOR]

Additional Information

  • Source:European Financial Management. 2024/01, Vol. 30, Issue 1, p314
  • Document Type:Article
  • Subject Area:Law
  • Publication Date:2024
  • ISSN:1354-7798
  • DOI:10.1111/eufm.12415
  • Accession Number:174576493
  • Copyright Statement:Copyright of European Financial Management is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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