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2022
- handle: 10670/1.50bdo5
- dumas-03929954
http://creativecommons.org/licenses/by-nc-nd/ , info:eu-repo/semantics/OpenAccess
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Kolade Oke, « Inventor CEOs and market reaction : a tool for inside trading », DUMAS - Dépôt Universitaire de Mémoires Après Soutenance, ID : 10670/1.50bdo5
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Résumé
Inventor CEOs have supposedly superior understanding and information about the innovative output of the company they are leading, in contrast to non-inventor CEOs. Particularly, because they possess advanced technical knowledge and experience in producing inventions. In this study, the author examines to what extent the market incrementally values this superior information position when the CEO engages into trading the stock of the company. Using a dataset of the trading behaviour of a sample of 652 CEOs of US-listed companies, the dissertation assesses the cumulative abnormal returns (CAR) surrounding CEO stock buying and selling -events. The findings show that, in the case of inside stock purchases by CEOs, the market significantly positively values the superior technological information position that inventorship offers. Hence, the author is enticed to conclude that in case of stock purchases by CEOs, the market follows the lead of inventor CEOs more substantially.