What question did this study set out to answer?

The study aims to analyze insider trading behavior to assess the economic consequences of mandated accounting standards.

March 18, 2026The Accounting Review

Trades by Insiders and Mandated Accounting Standards.

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Authors

DLDavid F. Larcker RRRenee RederTama Art University DSDaniel T. Simon

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Implication

This research examines insider trading behavior, linking it to economic consequences of accounting changes, implying important insights into market reactions.

Key Points

The study aims to analyze insider trading behavior to assess the economic consequences of mandated accounting standards.
Examined trades by insiders surrounding the exposure draft for FASB Statement No. 19
Compared trades of full-cost insiders to their historical behavior
Analyzed the trading behavior of successful-efforts insiders as a control
Full-cost insiders exhibited increased selling compared to historical behavior
The selling behavior suggests that insiders perceive negative economic consequences associated with FASB Statement No. 19

Cite This Study

Larcker et al. (1983) studied this question.

synapsesocial.com/papers/69ba42ee4e9516ffd37a3ae6 https://doi.org/10.2308/tar-4486807

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Implication

This research examines insider trading behavior, linking it to economic consequences of accounting changes, implying important insights into market reactions.

Trades by Insiders and Mandated Accounting Standards.

Discussion

Member takes

Implication

Key Points

Cite This Study

Trades by Insiders and Mandated Accounting Standards.

Discussion

Member takes

Implication

Key Points

Cite This Study

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