Do Short Sellers Front-Run Insider Sales?
We find evidence of significant increases in short sales immediately prior to large insider sales, consistent with information leakage and front-running. We examine a number of alternative explanations that the increase in short sales is driven by public information about the firm or about the im...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | en_US |
| Published: |
Cambridge, MA; Alfred P. Sloan School of Management, Massachusetts Institute of Technology
2011
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| Subjects: | |
| Online Access: | http://hdl.handle.net/1721.1/65427 |
| _version_ | 1811098439613677568 |
|---|---|
| author | Khan, Mozaffar Lu, Hai |
| author_facet | Khan, Mozaffar Lu, Hai |
| author_sort | Khan, Mozaffar |
| collection | MIT |
| description | We find evidence of significant increases in short sales immediately prior to large insider
sales, consistent with information leakage and front-running. We examine a number of
alternative explanations that the increase in short sales is driven by public information
about the firm or about the impending insider sale, but the evidence is inconsistent with
these explanations. The result has implications for the enforcement of insider
information regulations, and for timely disclosure of short sales information by stock
exchanges. |
| first_indexed | 2024-09-23T17:14:53Z |
| format | Working Paper |
| id | mit-1721.1/65427 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T17:14:53Z |
| publishDate | 2011 |
| publisher | Cambridge, MA; Alfred P. Sloan School of Management, Massachusetts Institute of Technology |
| record_format | dspace |
| spelling | mit-1721.1/654272019-04-14T07:23:14Z Do Short Sellers Front-Run Insider Sales? Khan, Mozaffar Lu, Hai Short Selling Insider Sales Front Running Information Leakage We find evidence of significant increases in short sales immediately prior to large insider sales, consistent with information leakage and front-running. We examine a number of alternative explanations that the increase in short sales is driven by public information about the firm or about the impending insider sale, but the evidence is inconsistent with these explanations. The result has implications for the enforcement of insider information regulations, and for timely disclosure of short sales information by stock exchanges. 2011-08-29T15:11:17Z 2011-08-29T15:11:17Z 2008-06-03 Working Paper http://hdl.handle.net/1721.1/65427 en_US MIT Sloan School of Management Working Paper;4706-08 application/pdf Cambridge, MA; Alfred P. Sloan School of Management, Massachusetts Institute of Technology |
| spellingShingle | Short Selling Insider Sales Front Running Information Leakage Khan, Mozaffar Lu, Hai Do Short Sellers Front-Run Insider Sales? |
| title | Do Short Sellers Front-Run Insider Sales? |
| title_full | Do Short Sellers Front-Run Insider Sales? |
| title_fullStr | Do Short Sellers Front-Run Insider Sales? |
| title_full_unstemmed | Do Short Sellers Front-Run Insider Sales? |
| title_short | Do Short Sellers Front-Run Insider Sales? |
| title_sort | do short sellers front run insider sales |
| topic | Short Selling Insider Sales Front Running Information Leakage |
| url | http://hdl.handle.net/1721.1/65427 |
| work_keys_str_mv | AT khanmozaffar doshortsellersfrontruninsidersales AT luhai doshortsellersfrontruninsidersales |