Style timing with insiders

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

Research output: Contribution to journalArticle

4 Citations (Scopus)

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 languageEnglish (US)
Pages (from-to)46-66
Number of pages21
JournalFinancial Analysts Journal
Volume66
Issue number4
DOIs
StatePublished - Jul 2010
Externally publishedYes

Fingerprint

Insider
Value premium
Investors
Growth stocks
Aggregate demand
Sentiment
Insider trading
Mispricing

ASJC Scopus subject areas

  • Finance
  • Accounting
  • Economics and Econometrics

Cite this

Style timing with insiders. / Knewtson, Heather S.; Sias, Richard W; Whidbee, David A.

In: Financial Analysts Journal, Vol. 66, No. 4, 07.2010, p. 46-66.

Research output: Contribution to journalArticle

Knewtson, HS, Sias, RW & Whidbee, DA 2010, 'Style timing with insiders', Financial Analysts Journal, vol. 66, no. 4, pp. 46-66. https://doi.org/10.2469/faj.v66.n4.7
Knewtson, Heather S. ; Sias, Richard W ; Whidbee, David A. / Style timing with insiders. In: Financial Analysts Journal. 2010 ; Vol. 66, No. 4. pp. 46-66.
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