Journal of Finance Vol. 53 No. 2 1998

Overreaction and Insider Trading: Evidence from Growth and Value Portfolios

Michael S. Rozeff¹; Mir A. Zaman²

¹ School of Management University at Buffalo SUNY · ² College of Business Administration University of Northern Iowa

Abstract

Insider transactions are not random across growth and value stocks. We find that insider buying climbs as stocks change from growth to value categories. Insider buying also is greater after low stock returns, and lower after high stock returns. These findings are consistent with a version of overreaction which says that prices of value stocks tend to lie below fundamental values, and prices of growth stocks tend to lie above fundamental values.

DOI

10.1111/0022-1082.275500

Volume

53

Issue

2

Pages

701-716

Language

en

Sources

openalex crossref

Cite

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