Akin, OzlemColeman, Nicholas S.Fons-Rosen, ChristianPeydró, José-LuisUniversitat Pompeu Fabra. Departament d'Economia i Empresa2024-11-142024-11-142016-10-01Financial Management, 50(3), 2021, pp. 619-644http://hdl.handle.net/10230/27418We 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.application/pdfengL'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative CommonsPolitical connections and informed trading: Evidence from TARP<resourceType xmlns="http://datacite.org/schema/kernel-3" resourceTypeGeneral="Other">info:eu-repo/semantics/workingPaper</resourceType><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">political connections</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">political economy in banking</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">insider trading</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">tarp</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">bank bailouts</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">Business Economics and Industrial Organization</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">Finance and Accounting</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">Labour, Public, Development and Health Economics</subject><rights xmlns="http://datacite.org/schema/kernel-3">info:eu-repo/semantics/openAccess</rights>