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Political connections and informed trading: evidence from TARP

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dc.contributor.author Akın, Özlem
dc.contributor.author Coleman, Nicholas S.
dc.contributor.author Fons‐Rosen, Christian
dc.contributor.author Peydró, José-Luis
dc.date.accessioned 2019-12-18T11:39:13Z
dc.date.issued 2019
dc.identifier.citation Akin O, Coleman NS, Fons‐Rosen C, Peydró J‐L. Political connections and informed trading: evidence from TARP. Financ Manage. 2019 Sep 3:1-48. DOI: 10.1111/fima.12292
dc.identifier.issn 0046-3892
dc.identifier.uri http://hdl.handle.net/10230/43201
dc.description.abstract We study insider trading behavior surrounding the largest bank bailout in history: TARP. In politically‐connected banks, insider buying during the pre‐TARP period is associated with increases in abnormal returns around bank‐specific TARP announcement; for unconnected banks, trading and returns are uncorrelated. Results hold across insiders within the same bank and are stronger for finance‐related government connections. Through a FOIA request we obtained the previously undisclosed TARP funds requested; the ratio of received to requested funds correlates both with abnormal returns and insider buying behavior in connected banks.
dc.description.sponsorship Christian Fons‐Rosen acknowledges financial support by the Spanish Ministry of Economy and Competitiveness (ECO2014–55555–P).José‐Luis Peydró acknowledges financial support from both ECO2015‐68182‐P (MINECO/FEDER, UE) and the European Research Council Grant (project 648398).
dc.format.mimetype application/pdf
dc.language.iso eng
dc.publisher Wiley
dc.relation.ispartof Financ Manage. 2019 Sep 3:1-48. DOI: 10.1111/fima.12292
dc.rights This is the peer reviewed version of the following article: Akin O, Coleman NS, Fons‐Rosen C, Peydró J‐L. Political connections and informed trading: evidence from TARP. Financ Manage. 2019 Sep 3:1-48, which has been published in final form at https://doi.org/10.1111/fima.12292. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.
dc.title Political connections and informed trading: evidence from TARP
dc.type info:eu-repo/semantics/article
dc.identifier.doi https://doi.org/10.1111/fima.12292
dc.subject.keyword Political connections
dc.subject.keyword Political economy in banking
dc.subject.keyword Insider trading
dc.subject.keyword TARP
dc.subject.keyword Bank bailouts
dc.relation.projectID info:eu-repo/grantAgreement/EC/H2020/648398
dc.relation.projectID info:eu-repo/grantAgreement/ES/1PE/ECO2014-55555-P
dc.relation.projectID info:eu-repo/grantAgreement/ES/1PE/ECO2015-68182-P
dc.rights.accessRights info:eu-repo/semantics/embargoedAccess
dc.type.version info:eu-repo/semantics/acceptedVersion
dc.embargo.liftdate 2020-09-03
dc.date.embargoEnd info:eu-repo/date/embargoEnd/2020-09-03


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