An unreliable canary: Insider trading, the cash flow hypothesis and the financial crisis

Uncertain times and the insider perspective

“…Such instances are, in any case, difficult to detect. Where the literature highlights illegal activity, it is in reference to cases of notoriety such as Ivan Boesky's documented history of illicit trades (See Chakravarty & McConnell, 1999;Meulbroek, 1992 andMeulbroek &Hart, 1997) or through inference based on stock price unusual stock price movement ahead of recognized price affecting events (Lambe, 2016). Instead, Aldridge and Cicero formulate the attentive trading hypothesis that suggests that insiders are particularly keen to interpret and act upon publicly available information before others.…”