Sec Rule 10b5-1 and insiders' strategic trade

Management Science

Volumn 55, Issue 2, 2009, Pages 224-239

  Jagolinzer, Alan D ^a  

^a STANFORD UNIVERSITY   (United States)

Author keywords

Diversification trade; Insider trading; Planned trade; Securities exchange act of 1934

Indexed keywords

DIVERSIFICATION TRADE; FIRM PERFORMANCE; INSIDER TRADING; MARKET TRANSACTIONS; PLANNED TRADE; PRIVATE INFORMATION; SECURITIES AND EXCHANGE COMMISSION; SECURITIES EXCHANGE ACT OF 1934;

SALES;

COMMERCE;

EID: 67649964752     PISSN: 00251909     EISSN: 15265501     Source Type: Journal    
DOI: 10.1287/mnsc.1080.0928     Document Type: Article

References (47)

1. Aboody, D., R. Kasznik. 2000. CEO stock option awards and the timing of corporate voluntary disclosures. J. Accounting Econom. 29 73-100.
2. Bainbridge, S. M. 2001. The law and economics of insider trading: A comprehensive primer. Working paper, School of Law, University of California at Los Angeles, Los Angeles.
3. Barber, B. M., J. D. Lyon. 1997. Detecting long-run abnormal stock returns: The empirical power and specification of test statistics. J. Financial Econom. 43 341-372.
4. Bettis, J. C., J. L. Coles, M. L. Lemmon. 2000. Corporate policies restricting trading by insiders. J. Financial Econom. 57 191-220.
5. Carhart, M. M. 1997. On persistence in mutual fund performance. J. Finance 52 57-82.
6. Daniel, K., M. Grinblatt, S. Titman, R. Wermers. 1997. Measuring mutual fund performance with characteristic-based benchmarks. J. Finance 52 1035-1058.
7. DeBondt, W. F. M., R. Thaler. 1985. Does the stock market overreact? J. Finance 40 793-805.
8. Fama, E. F., K. R. French. 1993. Common risk factors in the returns on stocks and bonds. J. Financial Econom. 33 3-56.
9. Finnerty, J. E. 1976. Insiders and market efficiency. J. Finance 31 1141-1148.
10. Fried, J. M. 2003. Insider abstention. Yale Law J. 113 455-492.
11. Garfinkel, J. A. 1997. New evidence on the effects of federal regulations on insider trading: The insider trading and securities fraud enforcement act (ITSFEA). J. Corporate Finance 3 89-111.
12. Givoly, D., D. Palmon. 1985. Insider trading and the exploitation of inside information: Some empirical evidence. J. Bus. 58 69-87.
13. Gow, I., G. Ormazabal, D. Taylor. 2008. Correcting for crosssectional and time-series dependence in accounting research. Working paper, Stanford Graduate School of Business, Stanford, CA.
14. Jaffe, J. F. 1974. The effect of regulation changes on insider trading. Bell J. Econom. Management Sci. 5 93-121.
15. Jagolinzer, A. D., D. T. Roulstone. 2008. Litigation risk and the distribution of insiders' trades around earnings announcements. Working paper, University of Chicago, Chicago.
16. Jagolinzer, A. D., D. F. Larcker, D. J. Taylor. 2008. The impact of the general counsel in corporate governance. Working paper, Stanford Graduate School of Business, Stanford, CA.
17. Jeng, L. A. 1999. Corporate insiders and the window of opportunity. Working paper, Boston University, Boston.
18. Jeng, L. A., A. Metrick, R. Zeckhauser. 2003. Estimating the returns to insider trading: A performance-evaluation perspective. Rev. Econom. Stat. 85 453-471.
19. Jenter, D. 2005. Market timing and managerial portfolio decisions. J. Finance 60 1903-1949.
20. Johnson, M. F., K. K. Nelson, A. C. Pritchard. 2007. Do the merits matter more? The impact of the private securities litigation reform act. J. Law, Econom., Organ. 23 627-652.
21. Karpoff, J. M., D. Lee. 1991. Insider trading before new issue announcements. Financial Management 20 18-26.
22. Kothari, S. P., J. B. Warner. 1997. Measuring long-horizon security performance. J. Financial Econom. 43 301-339.
23. Lakonishok, J., I. Lee. 2001. Are insider trades informative? Rev. Financial Statist. 14 79-111.
24. Lane, M. J. 2001. SEC insider trading rule doesn't instill confidence. Crain's Chicago Business (December 3) 11.
25. Legal Information Institute. 2008. Affirmative defense. Cornell Law School, Ithaca, NY. http://www.law.cornell.edu/lexicon /affirmative-defense.htm.
26. Lie, E. 2005. On the timing of CEO stock option awards. Management Sci. 51 802-812.
27. McDonald, J. F., R. A. Moffitt. 1980. The uses of tobit analysis. Rev. Econom. Statist. 62 318-321.
28. Mitchell, M. L., E. Stafford. 2000. Managerial decisions and longterm stock price performance. J. Bus. 73 287-329.
29. Noe, C. F. 1999. Voluntary disclosures and insider transactions. J. Accounting Econom. 27 305-327.
30. Park, S., H. J. Jang, M. P. Loeb. 1995. Insider trading activity surrounding annual earnings announcements. J. Bus., Finance, Accounting 22 587-614.
31. Penman, S. H. 1982. Insider trading and the dissemination of firms' forecast. Inform. J. Bus. 55 479-503.
32. Petersen, M. 2008. Estimating standard errors in finance panel data sets: Comparing approaches. Rev. Financial Statist. Forthcoming.
33. Quinlivan, S., M. Phelps. 2001. SEC Rule 10b5-1: A New Opportunity for Officers and Directors of Public Companies to Sell Stock Legally [online]. Leonard, Street, and Dienard law firm, Minneapolis. Retrieved October 2, 2003, http://www.leonard.com/generic.asp?item=/frontpageweb/generic/newsitem53.html.
34. Rogers, J. L., P. C. Stocken. 2005. Credibility of management forecasts. Accounting Rev. 80 1233-1260.
35. Rogers, W. 1993. Regression standard errors in clustered samples. Stata Technical Bull. 13 19-23.
36. Roncek, D. W. 1992. Learning more from tobit coefficients: Extending a comparative analysis of political protest. Amer. Sociol. Rev. 57 503-507.
37. Roulstone, D. T. 2003. The relation between insider-trading restrictions and executive compensation. J. Accounting. Res. 41 525-553.
38. Sen, R. 2008. Are insider sales under 10b5-1 plans strategically timed? Working paper, New York University, New York.
39. Seyhun, H. N. 1992. The effectiveness of the insider-trading sanctions. J. Law Econom. 35 149-182.
40. Seyhun, H. N. 2000. Investment Intelligence from Insider Trading. MIT Press, Cambridge, MA.
41. Seyhun, H. N., M. H. Bradley. 1997. Corporate bankruptcy and insider trading. J. Bus. 70 189-216.
42. Simons, D. 2000. Healtheon/WebMD's Misguided PR Scheme. Forbes.com (August 9), http://www.forbes.com/2000/08/09 /mu6.html.
43. U. S. Securities and Exchange Commission. 2000. Proposed Rule: S7-31-99, IIIA. Rule 10b5-1: Trading "On the Basis of" Material Nonpublic Information. http://www.sec.gov/rules/proposed /34-42259.htm.
44. U. S. Securities and Exchange Commission. 2001. Division of Corporation Finance: Manual of Publicly Available Telephone Interpretations (Supplement 4). http://www.sec.gov/interps /telephone/phonesupplement4.htm.
45. U. S. Securities and Exchange Commission. 2007a. Speech by SEC Staff: Remarks at the 2007 Corporate Counsel Institute, March 8, http://www.sec.gov/ news/speech/2007 /spch030807lct2.htm.
46. U. S. Securities and Exchange Commission. 2007b. Opening Remarks Before the 15th Annual NASPP Conference, October 10, http://www.sec.gov/news/speech/ 2007/spch101007lct.htm.
47. Yermack, D. 1997. Good Timing: CEO stock option awards and company news announcements. J. Finance 52 449-476.