Insider Trading Increases Market Efficiency
The empirical research (for example, here, here, here and here) on insider trading demonstrates that insider transactions have significant predictive power for future stock returns as they reveal helpful information that may affect the price of stocks. George Jiang and Yun Ma contribute to the literature with their November 2023 study, “Does Insider Trading Correct Mispricing?” which examined whether insider trades contained information about future firm fundamentals for mispriced stocks and the extent to which insider trades incorporated future fundamental information into stock prices— insiders can benefit by providing more information as to future firm fundamentals or by identifying market mispricing.
Can read rest of my Alpha Architect article here.
Don't believe either uses that, they do use profitability metrics, bit different from each other (but highly correlated) with Avantis I believe having more profitability exposure
Shareholder yield strategy takes advantage of this right? I know Cambria takes share repurchase into account in their funds. Does Avantis and Dimensional do the same ?