Graduation Year
2019
Date of Submission
4-2019
Document Type
Campus Only Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Yong Kim
Terms of Use & License Information
Rights Information
John S Savard
Abstract
This paper examines the lockup expiration date event for technology firms post Global Financial Crisis to investigate the existence of abnormal returns around this date and determine the explanatory power that insider trading and the increase in available shares have on the abnormal return. Contributions to literature include using an updated sampling, targeting the technology industry, and constructing unique variables such as the dollar value of insider trades around the lockup expiration date. There exists statistically significant three-day cumulative abnormal returns of -1.33%. Firms with higher percentages of insiders who sell their positions tend to experience a further decrease in cumulative abnormal returns (CAR). The supply effect of these shares being opened to the market is not significant at the 95% confidence level. Thus, insider trading rather than increased supply accounts for variations in the abnormal returns across technology firms.
Recommended Citation
Savard, John, "Abnormal Returns around Lock-Up Expiration Date and the Explanatory Power of Insider Trading for Technology Firms" (2019). CMC Senior Theses. 2208.
https://scholarship.claremont.edu/cmc_theses/2208
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.
