Cardiff University | Prifysgol Caerdydd ORCA
Online Research @ Cardiff 
WelshClear Cookie - decide language by browser settings

Private information in executives’ option trades: evidence from the UK

Kyriacou, Kyriacos, Luintel, Kul ORCID: https://orcid.org/0000-0001-7430-3926 and Bryan, Mase 2008. Private information in executives’ option trades: evidence from the UK. [Working Paper]. Cardiff Economics Working Papers, Cardiff: Cardiff University.

[thumbnail of e2008_4.pdf]
Preview
PDF - Published Version
Download (251kB) | Preview

Abstract

This paper investigates whether UK executives use private information in the trading decisions associated with the exercise of their executive stock options. We find that UK executives’ exercise and sell decisions are motivated by their private information but not by their anticipation of future return volatility. These findings appear robust when we control for additional motivating factors that include option moneyness, the previous stock return and the value of the exercise. We argue that the disparity in the informativeness of US and UK executives’ trades at exercise is related to important differences in executive remuneration, and in the regulation and taxation of executive stock options.

Item Type: Monograph (Working Paper)
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > HB Economic Theory
Publisher: Cardiff University
Date of First Compliant Deposit: 30 March 2016
Last Modified: 28 Oct 2022 10:18
URI: https://orca.cardiff.ac.uk/id/eprint/77781

Actions (repository staff only)

Edit Item Edit Item

Downloads

Downloads per month over past year

View more statistics