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. © 2007 The Authors.
| Original language | English |
|---|---|
| Pages (from-to) | 417-437 |
| Journal | Accounting and Finance |
| Volume | 48 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - Sept 2008 |
Research Keywords
- Corporate governance
- Dividends
- Earnings
- Insider trading
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