TY - GEN
T1 - Inside insider trading
T2 - 2013 IEEE/ACM International Conference on Advances in Social Networks Analysis and Mining, ASONAM 2013
AU - Tamersoy, Acar
AU - Xie, Bo
AU - Lenkey, Stephen L.
AU - Routledge, Bryan R.
AU - Chau, Duen Horng
AU - Navathe, Shamkant B.
N1 - Copyright:
Copyright 2014 Elsevier B.V., All rights reserved.
PY - 2013
Y1 - 2013
N2 - How do company insiders trade? Do their trading behaviors differ based on their roles (e.g., CEO vs. CFO)? Do those behaviors change over time (e.g., impacted by the 2008 market crash)? Can we identify insiders who have similar trading behaviors? And what does that tell us? This work presents the first academic, large-scale exploratory study of insider filings and related data, based on the complete Form 4 fillings from the U.S. Securities and Exchange Commission (SEC). We analyzed 12 million transactions by 370 thousand insiders spanning 1986 to 2012, the largest reported in academia. We explore the temporal and network-centric aspects of the trading behaviors of insiders, and make surprising and counter-intuitive discoveries. We study how the trading behaviors of insiders differ based on their roles in their companies, the transaction types, the company sectors, and their relationships with other insiders. Our work raises exciting research questions and opens up many opportunities for future studies. Most importantly, we believe our work could form the basis of novel tools for financial regulators and policymakers to detect illegal insider trading, help them understand the dynamics of the trades and enable them to adapt their detection strategies towards these dynamics.
AB - How do company insiders trade? Do their trading behaviors differ based on their roles (e.g., CEO vs. CFO)? Do those behaviors change over time (e.g., impacted by the 2008 market crash)? Can we identify insiders who have similar trading behaviors? And what does that tell us? This work presents the first academic, large-scale exploratory study of insider filings and related data, based on the complete Form 4 fillings from the U.S. Securities and Exchange Commission (SEC). We analyzed 12 million transactions by 370 thousand insiders spanning 1986 to 2012, the largest reported in academia. We explore the temporal and network-centric aspects of the trading behaviors of insiders, and make surprising and counter-intuitive discoveries. We study how the trading behaviors of insiders differ based on their roles in their companies, the transaction types, the company sectors, and their relationships with other insiders. Our work raises exciting research questions and opens up many opportunities for future studies. Most importantly, we believe our work could form the basis of novel tools for financial regulators and policymakers to detect illegal insider trading, help them understand the dynamics of the trades and enable them to adapt their detection strategies towards these dynamics.
UR - http://www.scopus.com/inward/record.url?scp=84893245593&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84893245593&partnerID=8YFLogxK
U2 - 10.1145/2492517.2500288
DO - 10.1145/2492517.2500288
M3 - Conference contribution
AN - SCOPUS:84893245593
SN - 9781450322409
T3 - Proceedings of the 2013 IEEE/ACM International Conference on Advances in Social Networks Analysis and Mining, ASONAM 2013
SP - 797
EP - 804
BT - Proceedings of the 2013 IEEE/ACM International Conference on Advances in Social Networks Analysis and Mining, ASONAM 2013
PB - Association for Computing Machinery
Y2 - 25 August 2013 through 28 August 2013
ER -