Review of Financial Studies Vol. 31 No. 11 2018
Strategic News Releases in Equity Vesting Months
open access
Abstract
We find that CEOs release 20% more discretionary news items in months in which they are expected to sell equity, predicted using scheduled vesting months. These vesting months are determined by equity grants made several years prior and thus unlikely to be driven by the current information environment. The increase arises for positive news, but not neutral or negative news, nor nondiscretionary news. News releases fall in the month before and month after the vesting month. News in vesting months generates a temporary increase in stock prices and market liquidity, which the CEO exploits by cashing out shortly afterwards.
- DOI
- 10.1093/rfs/hhy070
- Volume
- 31
- Issue
- 11
- Pages
- 4099-4141
- Language
- en
- Sources
- openalex crossref bibtex:phds-export.bib