رفتار تجارت داخلی قبل از اطلاعیه ورشکستگی فصل 11

This study uses non-parametric methods to examine the difference in trading behavior between Chapter 11 bankruptcy firms and non-bankruptcy firms traded on New York Stock Exchange (NYSE)/American Stock Exchange (AMEX) exchanges. It documents new evidence about the anomaly of insider purchases rather than sales prior to Chapter 11 bankruptcy announcements. Insiders of Chapter 11 bankruptcy firms purchase significantly fewer shares than insiders of the control firms before the bankruptcy announcement. Although insider trading volume declines long before the announcement, the decline is statistically significant only during the 3-month period before the announcement. The study, however, finds no significant difference in trading behavior between insiders of firms that ceased to trade on and those that continue to trade on the NYSE/AMEX within 5 years after the bankruptcy announcements.