IDEAS home Printed from https://ideas.repec.org/a/eee/finana/v104y2025ipas1057521925003709.html
   My bibliography  Save this article

Corporate insider trading and extreme weather events: Evidence from tropical storms in the US

Author

Listed:
  • Malik, Ihtisham A.
  • Hodgson, Allan
  • Faff, Robert W.
  • Xiong, Zhengling

Abstract

This study examines whether and to what extent insiders exploit their informational advantage, surrounding extreme weather events. Adopting the US as our context, we find that public and private related tropical-storm information provides insiders with profitable buying opportunities, notably higher in the pre-landfall period and for executives. Our results suggest that insiders not only process meteorological forecasts more efficiently, but they also have superior private information advantages when compared to general investors who are inclined to negatively overreact to weather disasters.

Suggested Citation

  • Malik, Ihtisham A. & Hodgson, Allan & Faff, Robert W. & Xiong, Zhengling, 2025. "Corporate insider trading and extreme weather events: Evidence from tropical storms in the US," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    • Handle: RePEc:eee:finana:v:104:y:2025:i:pa:s1057521925003709
    DOI: 10.1016/j.irfa.2025.104283
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1057521925003709
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.irfa.2025.104283?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Insider trading; Extreme weather events; Information asymmetry;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finana:v:104:y:2025:i:pa:s1057521925003709. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620166 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.