자사주매입 방법에 따른 차별적 내부자거래

Abstract

This study employs conditional event study methodology to analyze how manager personal motives effect the method by which firms repurchase their share. To address this question, we examine insider sales activities around the announcement date of a stock repurchase. The following are the findings. First, we find that firms are more likely to choose direct repurchase how to buy directly from the stock market rather than indirect repurchase how to buy through a securities company when respective announcements are followed by upsurged net insider sales. The results are most significant after announcements 1Q and 2Q. Our finding remain indicate what strong correlation between stock repurchase methods and net insider sales. Second. stock repurchase firm through direct repurchase has negative correlation between before and after announcements about insider net sales. we interpret this result, insider shareholder can buy before announcements and after announcements they can sale to highest stock price for marginal profits. As a result, direct repurchase are used by insiders to transfer wealth among shareholders with insider emerging ahead of the public shareholder.