We investigate the impact of severe snowfall induced operational disruptions on insider trading. Applying geospatial analytics to an extensive dataset of snow cover, we conduct granular analyses of snowstorms across firms at establishment level. When analyzing a sample of firms that operate in snowfall-impacted areas, we find that corporate insiders significantly adjust their trading behavior during these events. These insiders not only predict lower future returns but also increase the size of their sales in response to snowfall crises. Further, we explore the salience and operational insights channels through which snowfall triggers informed insider sales. Our findings show that insiders residing in impacted regions, as well as senior insiders with unique operational insights, effectively avoid losses during these periods. The snow intensity test reveals that these phenomena are more pronounced for snowstorms of greater severity. We also provide direct evidence that establishments under severe snow strikes experience lower total sales volumes. Our study highlights the capacity of insiders to anticipate and respond to weather-related business risks.
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