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dc.contributor.authorBen-David, Itzhak
dc.contributor.authorBirru, Justin
dc.contributor.authorRossi, Andrea
dc.date.accessioned2019-04-05T21:29:13Z
dc.date.available2019-04-05T21:29:13Z
dc.date.issued2019-04
dc.identifier.citationBen-David, I., Birru, J., & Rossi, A. (2018). Industry familiarity and trading: Evidence from the personal portfolios of industry insiders. Journal of Financial Economics.en_US
dc.identifier.issn0304-405X
dc.identifier.doi10.1016/j.jfineco.2018.08.007
dc.identifier.urihttp://hdl.handle.net/10150/632041
dc.description.abstractWe study whether industry familiarity is an advantage in stock trading by exploring the trading patterns of industry insiders in their own personal portfolios. To do so, we identify accounts of industry insiders in a large data set provided by a retail discount broker. We find that insiders trade firms from their own industry more frequently. Furthermore, they earn abnormal returns exclusively when trading own-industry stocks, especially obscure stocks (small, low analyst coverage, high volatility). In a battery of tests, we find no evidence of the use of private information. The results are most consistent with the interpretation that industry familiarity is an advantage in stock trading. (C) 2018 Elsevier B.V. All rights reserved.en_US
dc.description.sponsorshipDice Center at the Fisher College of Businessen_US
dc.language.isoenen_US
dc.publisherELSEVIER SCIENCE SAen_US
dc.relation.urlhttps://www.sciencedirect.com/science/article/pii/S0304405X18302289en_US
dc.rights© 2018 Elsevier B.V. All rights reserved.en_US
dc.subjectRetail tradingen_US
dc.subjectInsidersen_US
dc.subjectOfficers and directorsen_US
dc.subjectInvestor experienceen_US
dc.titleIndustry Familiarity and Trading: Evidence from the Personal Portfolios of Industry Insidersen_US
dc.typeArticleen_US
dc.contributor.departmentUniv Arizona, Eller Coll Managementen_US
dc.identifier.journalJOURNAL OF FINANCIAL ECONOMICSen_US
dc.description.note24 month embargo; published online: 25 September 2018en_US
dc.description.collectioninformationThis item from the UA Faculty Publications collection is made available by the University of Arizona with support from the University of Arizona Libraries. If you have questions, please contact us at repository@u.library.arizona.edu.en_US
dc.eprint.versionFinal accepted manuscripten_US


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