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This study examines differences in insider groups' trading behaviours based on their characteristics. We use data on high-frequency insider trading and Korean bond rating change announcements. We find that insiders actively exploit their information advantage, and their transaction behaviour differs based on their position (e.g., blockholders, executives, or largest shareholders). In particular, the largest shareholders are usually the most informed traders among insiders. Our results indicate that market participants can use insider trading as an informative signal to make investment decisions. [ABSTRACT FROM AUTHOR]

By analysing daily data on the KOSPI stock market, we examine how investor sentiment and stock market returns respond to announcements of changes in analysts' recommendations. In addition, we examine the effect of these announcements on the relationship between investor sentiment and stock returns. We find that investor sentiment is more sensitive to upgrade announcements than it is to downgrade announcements, implying that analyst reports yield meaningful trading indications to uninformed investors. Furthermore, investor sentiment becomes pessimistic prior to bad news being released, significantly affecting the response of stock returns to downgrade announcements. Thus, investor sentiment is one possible cause of asymmetric stock market reactions to changes in analysts' recommendations. [ABSTRACT FROM AUTHOR]