Stock Performance and Insider Trading in Completed and Canceled Private Placements
一、讲座名称：Stock Performance and Insider Trading in completed and Canceled Private Placements
Stock Performance and Insider Trading in
Completed and Canceled Private Placements
This research examines the impact of insider trading on the completed and canceled private equity offerings. We find that insider trading has no impact on firms’ decisions to complete or cancel the offerings, but has positive impact on the long-run stock performance of the issuing firms. Firms complete the undervalued offerings and cancel the offerings when they no longer perceive theirshares areundervalued. Firms that complete private placementshave significantly higher abnormal announcement returns and betterlong-term stock performance than firms that cancel private placements.