Strategic News Releases in Equity Vesting Months

Strategic News Releases in Equity Vesting Months

Alex Edmans, Luis Goncalves-Pinto, Yanbo Wang, Moqi Groen-Xu

Series number :

Serial Number: 

Date posted :

September 01 2014

Last revised :

October 17 2018
SSRN Share


  • Voluntary Disclosure • 
  • Equity Vesting • 
  • CEO Incentives • 
  • News

We find that CEOs release 20% more discretionary news items in months in which they are expected to sell equity, predicted using scheduled vesting months. These vesting months are determined by equity grants made several years prior, and thus unlikely driven by the current information environment.

The increase arises for positive news, but not neutral or negative news, nor non-discretionary news. News releases fall in the month before and month after the vesting month. News in vesting months generates a temporary increase in stock prices and market liquidity, which the CEO exploits by cashing out shortly afterwards.


Real name:
Luis Goncalves-Pinto
Real name:
Moqi Groen-Xu
London School of Economics
Real name:
Yanbo Wang