Insider sales based on short-term earnings information

Milian, Jonathan A.

doi:10.1007/s11156-014-0496-7

Cited by 11 publications

(2 citation statements)

References 32 publications

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“…Signalling theory is concerned with decreasing the degree of information asymmetry between two parties involved in a transaction (Spence, 2002) and its use to explain corporate events is gaining momentum in areas such as corporate management, human resource management and entrepreneurship, as well as into the fields of finance, organizational science and accounting (Connelly et al, 2011). It is evident that inside managers know more about the firm and its future prospects than do outside investors (Anderson and Prezas, 2003;Chen et al, 2004;Wu and Lee, 2008;Shaw, 2012;Gangopadhyay et al, 2014;Koutmos, 2016;Milian, 2016). In the words of Stiglitz (2002, p.469), information asymmetries result when "different people know different things."…”

Section: Motivational Literature and Development Of Argumentsmentioning

confidence: 99%

The timing of new corporate debt issues and the risk-return tradeoff

Koutmos

Bozos

Dionysiou

et al. 2017

Rev Quant Finan Acc

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Section: Motivational Literature and Development Of Argumentsmentioning

confidence: 99%

The timing of new corporate debt issues and the risk-return tradeoff

Koutmos

Bozos

Dionysiou

et al. 2017

Rev Quant Finan Acc

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“…While prior studies have examined the economic determinants and benefits of foreign equity portfolio allocation, relatively less empirical work exists on how the interaction between insider trading laws enforcement and institutions may influence international portfolio investments (see So and Tse 2001;Papaioannou 2009;Phengpis and Swanson 2011;Chiou and Lee 2013;Okada 2013). Notwithstanding countries enacting insider trading laws, existing studies show that corporate insiders continue to trade on price-sensitive non-public information (Kryzanowski and Lazrak 2011;Milian 2016;Tartaroglu and Imhof 2017).…”

Section: Introductionmentioning

confidence: 99%

International equity portfolio investment and enforcement of insider trading laws: a cross-country analysis

Kwabi

Boateng

Adegbite

2018

Rev Quant Finan Acc

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In this study, we examine the effects of stringent insider trading laws' enforcement, institutions and stock market development on international equity portfolio allocation using data from 44 countries over the period 2001-2015. Our results suggest that stringent insider trading laws and their enforcement exert a positive and significant impact on international portfolio investment allocation. Further analysis indicates that the interaction between a country's institutional quality, stock market development and enforcement of insider trading laws have a positive and significant effect on international equity portfolio allocation. The findings of this study have implications for the design of portfolio investment trading strategies and contribute to the literature on foreign equity investment decisions. Beny LN (2007) Insider trading laws and stock markets around the world: An empirical contribution to the theoretical law and economics debate. J Corp Law 32:237-300 Beny LN (2008) Do investors in controlled firms value insider trading laws? International evidence. J Law Econ Pol Law 4:267-310. Bhattacharya U, Daouk H (2002) The world price of insider trading. J Finan 57:75-108. Brockman P, Chung DY (2002) Investor protection and firm liquidity. J Finan 58: 921-938 Brockman P, Tresl D, Unlu E (2014) The impact of insider trading laws on dividend payout policy. J Corp Finan 29:263-287 Buckley PJ, Clegg LJ, Cross AR, Liu X, Voss H, Zheng P (2007) The Determinants of Chinese Outward Foreign Direct Investment. J Int Bus Stud 38:499-518 Carlton D, Fischel D (1983) The regulation of insider trading. Stanf Law Rev 35: 857-857 Carrieri F, Errunza V, Majerbi B (2006) Does emerging market exchange risk affect global equity prices. J Financ Quant Anal 41:511-540 Chan K, Covrig V, Ng L (2005) What determines the domestic bias and foreign bias? Evidence from mutual fund equity allocations worldwide. J Finan 60:1495-1534 Chiou P, Lee CF (2013) Do investors still benefit from culturally home-biased diversification? An empirical study of China, Hong Kong, and Taiwan. Rev Quant Finan Acc 40:341-381 26 Chiyachantana CN, Jain PK, Jiang C, Wood RA (2004) International evidence on institutional trading behaviour and price impact. J Finan 59:869-898 Claessens S, Klingebiel D, Schmukler SL (2006) Stock market development and internationalization: Do economic fundamentals spur both similarly? J Empir Finan 13:316-350 Coles JL, Daniel ND, Naveen L (2008) Boards: Does one size fit all? J Financ Econ 87:329-356. Cooper IA, Kaplanis E (1986) Costs to cross-border investment and international equity market equilibrium. In: Edwards, A. (Ed.), Recent Advances in Corporate Finance. Cambridge University Press. Dahlquist M, Pinkowitz L, Stulz RM, Williamson R (2003) Corporate governance and the home bias. J Financ Quant Anal 38:87-110 Dahlquist M, Robertsson G (2001) Direct foreign ownership, institutional investors and firm characteristics. J Financ Econ 59:413-440. Dalko V, Wang MH (2016) Why is insider trading law ineffective? Three antitrust sug...

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