Large-scale insider trading analysis: patterns and discoveries

摘要: How do company insiders trade? Do their trading behaviors differ based on roles (e.g., chief executive officer vs. financial officer)? those change over time impacted by the 2008 market crash)? Can we identify who have similar behaviors? And what does that tell us? This work presents first academic, large-scale exploratory study of insider filings and related data, complete Form 4 fillings from U.S. Securities Exchange Commission. We analyze 12 million transactions 370 thousand spanning 1986–2012, largest reported in academia. explore temporal network-based aspects insiders, make surprising counterintuitive discoveries. how companies, types transactions, companies’ sectors, relationships with other insiders. Our raises exciting research questions opens up many opportunities for future studies. Most importantly, believe our could form basis novel tools regulators policymakers to detect illegal trading, help them understand dynamics trades, enable adapt detection strategies toward these dynamics.