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tsuomela : insider   6

Political Connections and the Informativeness of Insider Trades by Alan D. Jagolinzer, David F. Larcker, Gaizka Ormazabal, Daniel J. Taylor :: SSRN
"This paper examines the relation between political connections and informed trading by corporate insiders in the context of the Financial Crisis. The unprecedented magnitude of government intervention, the substantial impact of this intervention on firm value, and the political nature of the intervention provide a powerful setting to examine the relation between political connections and informed trading. Consistent with political connections providing corporate insiders with an information advantage, we find strong evidence of a relation between political connections and the informativeness of their trades. Consistent with this relation stemming from private information related to government intervention, we find the relation is strongest during the period in which TARP funds were dispersed, and strongest among politically connected insiders at banks that received TARP funds. Examining insider trades around the announcements of TARP infusions, we find evidence of significant trading thirty days in advance of the announcement, and that these trades predict the market reaction to the announcement. Notably, we find these relations are present only for the trades of politically connected insiders. Overall, our results suggest that politically connected insiders had an information advantage during the Crisis and traded to exploit this advantage."
economics  recession  history  2000s  crisis  finance  management  insider  politics  influence 
september 2016 by tsuomela
AmericanScience: A Team Blog: Lovecraft, Science, and Epistemic Subcultures
"Thinking about these communities reminded me of Lovecraft’s earlier interactions. In some ways, amateur journalism and epistolary circles of Lovecraft’s day were not unlike the blogs and webpages that Less Wrong and the chemtrailers use. (Yes, I know the dangers of cross-temporal and cross-technological comparisons.) Still, I think there is much to explore about how such groups produce and distribute their knowledge against the background of an epistemic status quo. If scientists have their journals—as Alex Csiszar has been exploring—the laity have their amateur journalism and their blogs. And such spaces give historians of science and technology and STS scholars a chance to examine and probe the practices of epistemic subcultures." Annotated link
sts  science  media  amateur  history  technology  insider  outsider  boundaries  expertise  laypeople  journalism 
april 2012 by tsuomela
Jeffrey Sachs: The Geithner-Summers Plan is Even Worse Than We Thought
Two weeks ago, I posted an article showing how the Geithner-Summers banking plan could potentially and unnecessarily transfer hundreds of billions of dollars of wealth from taxpayers to banks... Insiders can easily game the system created by Geithner and Summers to cost up to a trillion dollars or more to the taxpayers.
economics  banking  bailout  regulatory-capture  insider  gaming-the-system  gloom-and-doom 
april 2009 by tsuomela

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