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Is there information content from insider trading activities preceding earnings and dividend announcements in Hong Kong?

April 26, 2017activities Announcements content dividend Earnings hong kong Insider preceding trading

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Is there information content from insider trading activities preceding earnings and dividend announcements in Hong Kong?

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Author InfoLouis T. W. Cheng T. Y. Leung Abstract This study examines whether insiders (directors) exploit information advantage of their firms by trading stocks before the simultaneous earnings and dividend announcements in Hong Kong. Our findings show that there are significant net-insider-buying activities before the announcements of good news (‘Earnings-Dividend Increase’) and significant net-insider-selling activities before bad news (‘Earnings-Dividend Decrease’ and ‘Earnings Decrease-Dividend Zero’). In addition, our regression results provide some support for the hypothesis that there is a predictive relation between pre-event insider trading activity and the abnormal return of the announcements. Copyright (c) 2007 The Authors. Journal compilation (c) 2007 AFAANZ. Download InfoTo download: If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of fu