Research brief 002

82 basis points a month. Which insider trades carried the information?

A classic study separates trades that follow a calendar from trades that break it. We revisit the distinction with later data.

The idea worth investigating

An insider purchase is visible. Its motive is not. Cohen, Malloy and Pomorski use past trading calendars to distinguish recurring transactions from less predictable decisions.

The full analysis examines the study and the practical question behind it: A classic study separates trades that follow a calendar from trades that break it. We revisit the distinction with later data.

Includes a house adaptation; author findings and our results are assessed separately.

Paid analysis on Substack

See what changes the investment case.

The headline is the starting point. The subscriber analysis takes you through:

  • How the classification uses past information
  • What happened in our later US sample
  • Weighting sensitivity and the untouched holdout
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