What question did this study set out to answer?

To analyze the impact of SFAS No. 33 disclosures on insider trading behaviors, particularly regarding inflation-adjusted income.

Economic Consequences of SFAS No. 33--An Insider-Trading Perspective.

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Investigates insider trading behavior related to SFAS No. 33 disclosures, suggesting implications for market reactions.

To analyze the impact of SFAS No. 33 disclosures on insider trading behaviors, particularly regarding inflation-adjusted income.
Examined trading activity of corporate insiders for 441 firms.
Analyzed the relationship between inflation-adjusted disclosures and insider trading behavior.
Hypothesized that managers would sell stocks before negative disclosures.
Statistically significant evidence of net selling by managers prior to disclosures.
Positive correlation between expectations of income shrinkage and insider trading activities.
Findings support the hypothesis that lower reported income leads to insider selling.

Odaiyappa et al. (1992) studied this question.

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