Style timing with insiders

Heather S. Knewtson; Richard W. Sias; David A. Whidbee

doi:10.2469/faj.v66.n4.7

Style timing with insiders

Heather S. Knewtson
, Richard W. Sias
, David A. Whidbee

Research output: Contribution to journal › Article › peer-review

6 Scopus citations

Abstract

Aggregate demand by insiders predicts time-series variation in the value premium. Insider trading forecasts the value premium because insiders sell (buy) when markets-especially growth stocks-are overvalued (undervalued). This article suggests that investors can use signals from aggregate insider behavior to adjust style tilts and exploit sentiment-induced mispricing.

Original language	English (US)
Pages (from-to)	46-66
Number of pages	21
Journal	Financial Analysts Journal
Volume	66
Issue number	4
DOIs	https://doi.org/10.2469/faj.v66.n4.7
State	Published - Jul 2010
Externally published	Yes

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

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10.2469/faj.v66.n4.7

Cite this

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title = "Style timing with insiders",

abstract = "Aggregate demand by insiders predicts time-series variation in the value premium. Insider trading forecasts the value premium because insiders sell (buy) when markets-especially growth stocks-are overvalued (undervalued). This article suggests that investors can use signals from aggregate insider behavior to adjust style tilts and exploit sentiment-induced mispricing.",

author = "Knewtson, \{Heather S.\} and Sias, \{Richard W.\} and Whidbee, \{David A.\}",

year = "2010",

month = jul,

doi = "10.2469/faj.v66.n4.7",

language = "English (US)",

volume = "66",

pages = "46--66",

journal = "Financial Analysts Journal",

issn = "0015-198X",

publisher = "Taylor and Francis Ltd.",

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TY - JOUR

T1 - Style timing with insiders

AU - Knewtson, Heather S.

AU - Sias, Richard W.

AU - Whidbee, David A.

PY - 2010/7

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N2 - Aggregate demand by insiders predicts time-series variation in the value premium. Insider trading forecasts the value premium because insiders sell (buy) when markets-especially growth stocks-are overvalued (undervalued). This article suggests that investors can use signals from aggregate insider behavior to adjust style tilts and exploit sentiment-induced mispricing.

AB - Aggregate demand by insiders predicts time-series variation in the value premium. Insider trading forecasts the value premium because insiders sell (buy) when markets-especially growth stocks-are overvalued (undervalued). This article suggests that investors can use signals from aggregate insider behavior to adjust style tilts and exploit sentiment-induced mispricing.

UR - https://www.scopus.com/pages/publications/78549272375

UR - https://www.scopus.com/pages/publications/78549272375#tab=citedBy

U2 - 10.2469/faj.v66.n4.7

DO - 10.2469/faj.v66.n4.7

M3 - Article

AN - SCOPUS:78549272375

SN - 0015-198X

VL - 66

SP - 46

EP - 66

JO - Financial Analysts Journal

JF - Financial Analysts Journal

IS - 4

ER -

Style timing with insiders

Abstract

ASJC Scopus subject areas

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