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Cited by 396

The DOI matches its Crossref record; 45 of the 45 references it cites were found in a registry or an index.

Which Institutional Investors Trade Based on Private Information About Earnings and Returns?

Open access
BUSHEE, BRIAN J., GOODMAN, THEODORE H.·2007·Journal of Accounting Research
DOI 10.1111/j.1475-679x.2007.00234.x
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Abstract

Recent work suggests that institutional investors execute profitable trades based on private information about earnings and returns. We provide new evidence on the prevalence and sources of such informed trading by (1) testing for the creation and liquidation of positions based on private information, (2) introducing private information proxies that reflect the size and nature of an institution's position in each portfolio firm, and (3) using a methodology that examines multiple investor characteristics simultaneously at the institution‐firm level. We find that changes in ownership by institutions with large positions in a firm are consistent with informed trading. However, other previously documented proxies for private information produce results more consistent with risk‐based trading (e.g., investment style) or insignificant in the presence of other proxies (e.g., fiduciary type). We also find that informed trading is more prevalent in small firms and when the large positions are taken by investment advisers and large institutions.

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Metadata

Authors
BUSHEE, B. J., & GOODMAN, T. H.
Venue
Journal of Accounting Research
Publisher
Wiley
Published
2007-02-23
Volume
45
Issue
2
Pages
289-321
ISSN
  • 0021-8456 (ISSN-L)
  • 1475-679X
DOI
10.1111/j.1475-679x.2007.00234.x
OpenAlex
W3125207277
Cited by
396
References
45
FWCI
27.75
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: Which Institutional Investors Trade Based on Private Information About Earnings and Returns? https://app.cochat.ai/papers/10.1111/j.1475-679x.2007.00234.x
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BUSHEE, B. J., & GOODMAN, T. H. (2007). Which Institutional Investors Trade Based on Private Information About Earnings and Returns? Journal of Accounting Research. https://doi.org/10.1111/j.1475-679x.2007.00234.x

Data sources

Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.