Insider trading and the post-earnings-announcement drift

Christina Dargenidou, Ian Tonks, Fanis Tsoligkas

Research output: Contribution to journalArticlepeer-review

11 Citations (SciVal)
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We show that trades by corporate insiders after an earnings announcement determine in part the extent of the post-earnings announcement drift anomaly. Contrarian trades mitigate the under-reaction to earnings announcements, and confirmatory trades allow for price discovery with price movements continuing in the same direction as the earnings surprise. These results are consistent with insider trading being a mechanism that provides relevant information on transitory or permanent changes to the earnings process, allowing the market to make appropriate inferences about the nature of the earnings surprise.

Original languageEnglish
Pages (from-to)482-508
Number of pages27
JournalJournal of Business Finance and Accounting
Issue number3-4
Early online date16 Dec 2017
Publication statusPublished - 1 Mar 2018


  • earnings announcements
  • insider trading
  • market efficiency
  • market under-reaction

ASJC Scopus subject areas

  • Accounting
  • Business, Management and Accounting (miscellaneous)
  • Finance


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