Family-controlled firms and informed trading: Evidence from short sales

Journal of Finance

Volumn 67, Issue 1, 2012, Pages 351-385

  Anderson, Ronald C ^a   Reeb, David M ^b,c   Zhao, Wanli ^d  

^a AMERICAN UNIVERSITY   (United States)

^b TEMPLE UNIVERSITY   (United States)

^c NATIONAL UNIVERSITY OF SINGAPORE   (Singapore)

^d WORCESTER POLYTECHNIC INSTITUTE   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84863393855     PISSN: 00221082     EISSN: 15406261     Source Type: Journal    
DOI: 10.1111/j.1540-6261.2011.01714.x     Document Type: Article

References (40)

1. Ali, Ashiq, Tai-Yuan Chen, and Suresh Radhakrishnan, 2007, Corporate disclosures by family firms, Journal of Accounting and Economics 44, 238-286.
2. Anderson, Ronald C., Augustine Duru, and David M. Reeb, 2009, Founders, heirs, and corporate opacity in the United States, Journal of Financial Economics 92, 205-222.
3. Anderson, Ronald C., Sattar Mansi, and David M. Reeb, 2003, Founding family ownership and the agency cost of debt, Journal of Financial Economics 68, 263-285.
4. Anderson, Ronald C., and David M. Reeb, 2003, Founding-family ownership and firm performance: Evidence from the S&P 500, Journal of Finance 58, 1301-1328.
5. Anderson, Ronald C., and David M. Reeb, 2004, Board composition: Balancing family influence in S&P 500 firms, Administrative Sciences Quarterly 49, 209-237.
6. Asquith, Paul, Parag A. Pathak, and Jay R. Ritter, 2005, Short interest, institutional ownership, and stock returns, Journal of Financial Economics 78, 243-276.
7. Banerjee, Ajeyo, and Woodrow Eckard, 2001, Why regulate insider trading? Evidence from the first great merger wave(1897-1903), American Economic Review 91, 1329-1349.
8. Bennedsen, Morten, Kasper Meisner Nielsen, Francisco Pérez-González, and Daniel Wolfenzon, 2007, Inside the family firm: The role of families in succession decisions and performance, Quarterly Journal of Economics 122, 647-691.
9. Bertrand, Marianne, Simon Johnson, Krislert Samphantharak, and Antoinette Schoar, 2008, Mixing family with business: A study of Thai business groups and the families behind them, Journal of Financial Economics 88, 466-498.
10. Caliendo, Marco, and Sabine Kopeinig, 2008, Some practical guidance for the implementation of propensity score matching, Journal of Economic Surveys 22, 31-72.
11. Carlton, Dennis W., and Daniel R. Fischel, 1983, The regulation of insider trading, Stanford Law Review 35, 857-895.
12. Chakravarty, Sugato, and John J. McConnell, 1999, Does insider trading really move stock prices? Journal of Financial & Quantitative Analysis 34, 191-209.
13. Chan, Lilian H., Tai-Yuan Chen, and Gilles Hilary, 2010, Insider trading and family firms, Working paper, University of Hong Kong.
14. Christophe, Stephen E., Michael G. Ferri, and James J. Angel, 2004, Short-selling prior to earnings announcements, Journal of Finance 59, 1845-1875.
15. Coffee, John C., 2007, Law and the market: The impact of enforcement, University of Pennsylvania Law Review 156, 229-312.
16. Demsetz, Harold, 1986, Corporate control, insider trading, and rates of return, American Economic Review 76, 313-316.
17. Desai, Hemang, K. Ramesh, S. Ramu Thiagarajan, and Bala V. Balachandran, 2002, An investigation of the informational role of short interest in the Nasdaq market, Journal of Finance 57, 2263-2287.
18. Diamond, Douglas W., and Robert E. Verrecchia, 1987, Constraints on short-selling and asset price adjustment to private information, Journal of Financial Economics 18, 277-311.
19. Diether, Karl B., Kuan-Hui Lee, and Ingrid M. Werner, 2009, Short-sale strategies and return predictability, Review of Financial Studies 22, 575-607.
20. Dolgopolov, Stanislav, 2004, Insider trading and the bid-ask spread: A critical evaluation of adverse selection in market making, Capital University Law Review 33, 83-180.
21. Easley, David, Nicholas M. Kiefer, Maureen O'Hara, and Joseph B. Paperman, 1996, Liquidity, information, and infrequently traded stocks, Journal of Finance 51, 1405-1436.
22. Easterbrook, Frank H., 1981, Insider trading, secret agents, evidentiary privileges, and the production of information, Supreme Court Review 1981, 309-365.
23. Hoffman, Drew, 2007, Martha Stewart's insider trading case: A practical application of Rule 2.1, The Georgetown Journal of Legal Ethics 20, 707-718.
24. Huddart, Steven, Bin Ke, and Charles Shi, 2007, Jeopardy, non-public information, and insider trading around SEC 10-K and 10-Q filings, Journal of Accounting & Economics 43, 3-36.
25. James, Harold, 2006, Family Capitalism: Wendels, Haniels, Falcks, and the Continental European Model(Harvard Business Press, Cambridge, MA).
26. Kaul, Gautam, and Gautam M. Nimalendran, 1990, Price reversals: Bid-ask errors or market overreaction? Journal of Financial Economics 28, 67-93.
27. Kyle, Albert S., 1985, Continuous auctions and insider trading, Econometrica 53, 1315-1335.
28. Llorente, Guillermo, Roni Michaely, Gideon Saar, and Jiang Wang, 2002, Dynamic volume-return relation of individual stocks, Review of Financial Studies 15, 1005-1047.
29. Manne, Henry G., 1966, In defense of insider trading, Harvard Business Review 44, 113-122.
30. Massoud, Nadia, Debarshi Nandy, Anthony Saunders, and Keke Song, 2011, Do hedge funds trade on private information? Evidence from syndicated lending and short-selling, Journal of Financial Economics 99, 477-499.
31. Morck, Randall, Daniel Wolfenzon, and Bernard Yeung, 2005, Corporate governance, economic entrenchment, and growth, Journal of Economic Literature 43, 655-672.
32. Pérez-González, Francisco, 2006, Inherited control and firm performance, American Economic Review 96, 1559-1588.
33. Schulze, William S., Michael H. Lubatkin, and Richard N. Dino, 2003, Toward a theory of agency and altruism in family firms, Journal of Business Venturing 18, 473-490.
34. Seyhun, Nejat H., 1992, Why does aggregate insider trading predict future stock returns? Quarterly Journal of Economics 107, 1303-1331.
35. Shleifer, Andrei, and Robert W. Vishny, 1986, Large shareholders and corporate control, Journal of Political Economy 94, 461-488.
36. Shleifer, Andrei, and Robert W. Vishny, 1997, The limits of arbitrage, Journal of Finance 52, 35-55.
37. Tufano, Peter, 1996, Who manages risk? An empirical examination of risk management practices in the gold mining industry, Journal of Finance 51, 1097-1137.
38. Villalonga, Belén, 2004, Does diversification cause the "diversification discount"? Financial Management 33, 5-27.
39. Villalonga, Belén, and Raphael Amit, 2006, How do family ownership, control and management affect firm value? Journal of Financial Economics 80, 385-417.
40. Villalonga, Belén, and Raphael Amit, 2010, Family control of firms and industries, Financial Management 39, 863-904.