Equity, Insider Trading, & Restatements

This Research Spotlight provides a summary of the academic literature on the impact of equity ownership on firm performance and agency problems:

• The relation between equity ownership and performance
• The relation between equity ownership and future financial restatements
• The impact of clawback policies on future restatements
• The relation between equity ownership and insider trading
• The impact of insider trading policies on trading abuses

This Research Spotlight expands upon issues introduced in the Quick Guide “Equity Ownership.”