arbiter
JournalsAccount

The price impacts of informed investors

Corey Garriott & Ryan Riordan

Journal of Financial Markets2026https://doi.org/10.1016/j.finmar.2026.101058article
AJG 3ABDC A*
Weight
0.50

Abstract

We empirically identify a group of stock-exchange accounts that profit from 11 years of earnings surprises. Their trading behavior is consistent with privately informed trading, yet they have negative and temporary price impacts. We then empirically identify a second group of accounts that have positive and permanent price impacts. The trading behavior of the second group is more consistent with trading on public information, and they trade the wrong way before earnings surprises. The behavior of both account groups contrasts with models that associate permanent price impact with privately informed trading. • Two informed groups. Toronto stock exchange data identify (i) slow, earnings-informed accounts and (ii) rapid five-second traders. • Stealth profits, no footprint. Earnings-informed trade ≈ 20 % of volume, net C$3 bn, yet leave zero (even negative) lasting impact. • Public-info traders shift prices. Five-second traders’ market orders create durable moves while often filling earnings-informed limit orders. • How they stay hidden. Informed traders lean on passive orders and high noise periods to cloak activity. • Rethink “impact = private info.” Permanent impact mainly tags public-information flow; price-impact metrics misfire for private intel.

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1016/j.finmar.2026.101058

Or copy a formatted citation

@article{corey2026,
  title        = {{The price impacts of informed investors}},
  author       = {Corey Garriott & Ryan Riordan},
  journal      = {Journal of Financial Markets},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1016/j.finmar.2026.101058},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

The price impacts of informed investors

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.