Pérez Rodríguez, JorgeSosvilla Rivero, Simón JavierAndrada Felix, JulianGómez Déniz, Emilio2023-06-222023-06-2220221062-9408101791https://hdl.handle.net/20.500.14352/71912CRUE-CSIC (Acuerdos Transformativos 2022)In this paper, we use several indicators of trade informativeness to search for informed traders on the final trading days of Banco Popular, the first and only bank resolution case to date in the euro area. In particular, we use the model proposed by Preve and Tse (2013) to estimate the adjusted daily probability of informed trading and the probability of symmetric order-flow shock using high-frequency transaction data. Our empirical results indicate that upon the anticipation of a possible liquidation of the bank, informed investors reacted to the bad news by placing more weight on it and that Banco Popular experienced large increases in both buy- and sell-orders during the last days of trading when the bank registered a significant depletion of its deposit base. Moreover, we find evidence supporting the presence of inside trading and illiquidity, especially after speculation in the media that the bank could face a liquidation. Our study has important implications for market participants and regulatory authorities.engAtribución-NoComercial-SinDerivadas 3.0 Españahttps://creativecommons.org/licenses/by-nc-nd/3.0/es/journal articlehttps://doi.org/10.1016/j.najef.2022.101791https://doi.org/10.1016/j.najef.2022.101791open accessC13C41D53D82G12G14Asymmetric informationProbability of informed tradingProbability of symmetric order-flow shocksHigh-frequency dataBank failure.Bancos y cajasEconometría (Economía)Finanzas5302 Econometría