Site Meter

Bear(ish) Blogging

Dave Hoffman

Dave Hoffman is the Murray Shusterman Professor of Transactional and Business Law at Temple Law School. He specializes in law and psychology, contracts, and quantitative analysis of civil procedure. He currently teaches contracts, civil procedure, corporations, and law and economics.

You may also like...

2 Responses

  1. deven says:


    So if insiders traded it would provide better signals and the decline would have been less severe is your suggestion I think (please correct me if I am wrong).

    Would such trades be flagged so that folks know that the trades were by insiders? Also if a large amount of stock is held by insiders and they sell, it seems that the effect of “feeling sympathy” for those who were on the outside would recur. I guess more generally how might this insider signal work? I know you are teeing up thoughts for the future but I would love to knwo your thoughts here. Again if I misunderstood what you are saying my apologies.

  2. dave hoffman says:

    I think the traditional theory on this (Manne) is that the insider trades would exert downward pressure on stock price directly and as information cascaded out. Check out bainbridge’s article on the arguments ( which explores the (surprising) lack of empirical support for the intuition. I myself am not sure whether insider trading in Bear could have resulted in a smoother landing for the bank. On the other hand, it couldn’t have been much worse.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

To prove you're a person (not a spam script), type the security word shown in the picture. Click on the picture to hear an audio file of the word.
Anti-spam image