Political connections and informed trading: Evidence from TARP
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- dc.contributor.author Akin, Ozlem
- dc.contributor.author Coleman, Nicholas S.
- dc.contributor.author Fons-Rosen, Christian
- dc.contributor.author Peydró, José-Luis
- dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2024-11-14T10:09:57Z
- dc.date.available 2024-11-14T10:09:57Z
- dc.date.issued 2016-10-01
- dc.date.modified 2024-11-14T10:05:21Z
- 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.format.mimetype application/pdf*
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1542
- dc.identifier.citation Financial Management, 50(3), 2021, pp. 619-644
- dc.identifier.uri http://hdl.handle.net/10230/27418
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 1542
- dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- 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.subject.keyword Business Economics and Industrial Organization
- dc.subject.keyword Finance and Accounting
- dc.subject.keyword Labour, Public, Development and Health Economics
- dc.title Political connections and informed trading: Evidence from TARP
- dc.title.alternative
- dc.type info:eu-repo/semantics/workingPaper