Public Servants <3 Value

The academics,¬†Emory University professor Shivaram Rajgopal and Georgia State University accounting PhD candidate Roger M. White found that SEC employees tend to sell a company’s stock before the SEC takes enforcement action against the company.

The result, they wrote, were abnormal returns of about 4% for the market in general, and about 8.5% for the U.S. stock market.

Remember, control over value can always be monetized.