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Opportunistic Insider Trading During the COVID‐19 Pandemic

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  • Bijoy Chandra Das

Abstract

This paper examines whether opportunistic or routine insiders in US markets engage in informed trading and earn higher short‐term returns during the COVID‐19 pandemic. Our findings indicate that trades by opportunistic insiders are indeed informative, yielding higher returns compared to those of routine insiders during the pandemic. Interestingly, we also observe that opportunistic directors earn higher returns than CEOs. Additionally, opportunistic insiders trading in the Nasdaq market achieve higher returns compared to those in the NYSE, and opportunistic insiders in the financial sector outperform those in the non‐financial sector. Our results remain robust across various model specifications, alternative measures and considerations for endogeneity. Overall, our findings suggest that opportunistic insiders possess a significant informational advantage, enabling them to engage in informed trading during the pandemic.

Suggested Citation

  • Bijoy Chandra Das, 2025. "Opportunistic Insider Trading During the COVID‐19 Pandemic," Financial Markets, Institutions & Instruments, John Wiley & Sons, vol. 34(3), pages 131-149, August.
    • Handle: RePEc:wly:finmar:v:34:y:2025:i:3:p:131-149
    DOI: 10.1111/fmii.12213
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    References listed on IDEAS

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    1. Das, Bijoy Chandra, 2025. "Stress and Trading Behavior: Informativeness of Insider Trading Around COVID-19 Pandemic," CAFE Working Papers 39, Centre for Accountancy, Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University.

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