Insider Trading Thrives During Share Repurchase Announcements, Board Characteristics Key.
Insiders in companies sometimes use information about stock buybacks to make profitable trades. A study looked at how board members' characteristics affect this insider trading. They found that insider trading often happens around stock buyback announcements. Board members with longer tenure, more ownership in the company, and changes in directorship tend to trade more around these announcements. This suggests that having certain types of board members can help reduce insider trading.