Sales of secondary shares in SEOS: : A comparison across top managers, other insiders, and outsiders

• Autores: Sinan Gokkaya, Michael J. Highfield, John Robert Warren
• Localización: Financial management, ISSN 0046-3892, Vol. 43, Nº 4, 2014, págs. 757-794
• Idioma: inglés
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• Resumen

  • This paper investigates the information content of registered insider sales in the Seasoned Equity Offering (SEO) process from 1997 to 2009. We find that initial market reactions and long-run post-issue stock performance are negatively related to C-level executive insider sales, but unrelated to participation by nonexecutive insiders. We also find significantly lower post-issue abnormal earnings surprises for SEOs with C-level executive sales. Overall, the findings are consistent with the predictions of asymmetric information and agency theories.