Do insider trades reflect both contrarian beliefs and superior knowledge about future cash flow realizations

By Joseph D. Piotroski, Darren T. Roulstone. 2005

514 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/a7f9d4c4a83bbc944c5a25648b8d01d6ff851f37

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Citations in the corpus

Opportunism as a Firm and Managerial Trait: Predicting Insider Trading Profits and Misconduct (2017, background): “Piotroski and Roulstone (2005) find that insider trading reflects both private information about future profits and contrarianism against market prices.”
Identifying Expectation Errors in Value/Glamour Strategies: A Fundamental Analysis Approach (2012, unknown): “If a firm delists, we incorporate delisting returns following Shumway (1997). We form portfolios on June 30 by merging returns with financial information obtained from the firm’s most recently available annual financial statements.”
Jeopardy, Non-Public Information, and Insider Trading Around SEC 10-K and 10-Q Filings (2005, unknown): “Similarly, while Piotroski and Roulstone (2005) find only weak evidence of a significant correlation between insider trades and the innovation in that year’s annual earnings, they also find a highly significant relationship between insider trades in one year and the innovation in the next year’s…”
The Spillover Effect of Fraudulent Financial Reporting on Peer Firms’ Investments (2013, unknown): “We follow Piotroski and Roulstone (2005) by measuring the insider purchase ratio as shares purchased over the sum of shares purchased and shares sold.”
Legal Insider Trading and Market Efficiency (2008, unknown): “It is possible that insiders have some market timing ability (Jenter, 2005; Piotroski and Roulstone, 2005).”
Decoding Inside Information (2012, unknown): “For example, with respect to future earnings news, Piotroski and Roulstone (2005) show that insider trades reflect both contrarian beliefs and superior information about future cash flow realizations, while Ke, Huddard and Petroni (2003) demonstrate that insiders trade before significant accounting…”
Internal Control Over Financial Reporting and Managerial Rent Extraction: Evidence from the Profitability of Insider Trading (2013, background): “Next, we control for the book-to-market ratio (BTM) at the beginning of the year because prior research suggests insiders trade as contrarians (Rozeff and Zaman 1998; Piotroski and Roulstone 2005).”
Do Short Sellers Front-Run Insider Sales? (2013, unknown): “(2003) and Piotroski and Roulstone (2005) suggests that insider trades predict the firm’s future earnings performance.”
Corporate governance and the profitability of insider trading (2016, unknown): “Moreover, we use a similar approach as that used by Piotroski and Roulstone (2005) and examine the role of corporate governance in restricting different types of information.”