haku: @indexterm information / yhteensä: 1786
viite: 10 / 1786
| Tekijä: | Ivashina, V. Sun, Z. |
| Otsikko: | Institutional stock trading on loan market information |
| Lehti: | Journal of Financial Economics
2011 : MAY, VOL. 100:2, p. 284-303 |
| Asiasana: | institutional investors syndicated loans insider trading information |
| Kieli: | eng |
| Tiivistelmä: | One of the most essential developments in the corporate loan market over the past decade has been the increasing participation of institutional investors. As lenders, they routinely receive private information about borrowers. However, many of these investors also trade in public securities. This leads to a controversial question: Do institutional investors utilize private information obtained from the loan market to trade in public securities? This article examines the stock trading of institutional investors whose portfolios also hold loans. Using data from the Securities and Exchange Commission of loan amendments, the institutional investors with access to private information disclosed during loan amendments are identified. Then, a look is done to find abnormal returns on subsequent stock trades. We find that institutional participants in loan renegotiations subsequently trade in the same company's stock and outperforming trades by other managers and trades in other stocks by approximately 5.4% per annum. |
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