Investor Attention and Insider Trading

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dc.contributor.authorMansi, Sattaren
dc.contributor.authorPeng, Linen
dc.contributor.authorQi, Jianpingen
dc.contributor.authorShi, Hanen
dc.date.accessioned2025-01-15T20:06:33Zen
dc.date.available2025-01-15T20:06:33Zen
dc.date.issued2025en
dc.description.abstractWe identify a new mechanism of opportunistic insider trading linked to attention-driven mispricing. Insiders are more likely to sell their company's stock during periods of heightened retail attention and more inclined to buy when attention diminishes. The results are particularly pronounced for lottery-type stocks and for firms with substantial retail ownership. We demonstrate that our findings—which relate to indicators of mispricing, retail order imbalances, and Robinhood herding episodes—extend to seasoned equity issuances and cannot be solely explained by firm fundamentals. Attention-based insider trading is less likely to result in SEC enforcement actions and persists across different regulatory regimes.en
dc.description.versionAccepted versionen
dc.format.mimetypeapplication/pdfen
dc.identifier.orcidMansi, Sattar [0000-0001-7098-7996]en
dc.identifier.urihttps://hdl.handle.net/10919/124209en
dc.language.isoenen
dc.rightsIn Copyrighten
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/en
dc.titleInvestor Attention and Insider Tradingen
dc.title.serialJournal of Financial and Quantitative Analysisen
dc.typeArticle - Refereeden
dc.type.dcmitypeTexten
dc.type.otherArticleen
dcterms.dateAccepted2024-06-24en
pubs.organisational-groupVirginia Techen
pubs.organisational-groupVirginia Tech/Pamplin College of Businessen
pubs.organisational-groupVirginia Tech/Pamplin College of Business/Finance, Insurance, and Business Lawen
pubs.organisational-groupVirginia Tech/All T&R Facultyen
pubs.organisational-groupVirginia Tech/Pamplin College of Business/PCOB T&R Facultyen

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