Large-scale insider trading analysis: patterns and discoveries

Acar Tamersoy, Elias Khalil, Bo Xie, Stephen L. Lenkey, Bryan R. Routledge, Duen Horng Chau, Shamkant B. Navathe
2014 Social Network Analysis and Mining  
How do company insiders trade? Do their trading behaviors differ based on their roles (e.g., CEO vs. CFO)? Do those behaviors change over time (e.g., impacted by the 2008 market crash)? Can we identify insiders who have similar trading behaviors? And what does that tell us? This work presents the first academic, large-scale exploratory study of insider filings and related data, based on the complete Form 4 fillings from the U.S. Securities and Exchange Commission (SEC). We analyze 12 million
more » ... nsactions by 370 thousand insiders spanning 1986 to 2012, the largest reported in academia. We explore the temporal and network-based aspects of the trading behaviors of insiders, and make surprising and counter-intuitive discoveries. We study how the trading behaviors of insiders differ based on their roles in
doi:10.1007/s13278-014-0201-9 fatcat:a3pqwx6jwbf6zmf7mrsd2q54hu