Private information leakages and informed trading returns of tech target firms

Can digital transformation improve the information environment of the capital market? Evidence from the analysts' prediction behaviour

“…Private information is negatively correlated with the synchronicity of stock returns and positively correlated with the rise in stock prices (Ness and Ness, 2021). Therefore, companies pay great attention to the issue of private information disclosure to reduce the risk of information asymmetry and collapse to maximise their own profits (Madura and Ngo, 2014). When companies are in an environment where the risks of the network environment are high and corporate data are easily leaked, they take the initiative to reduce the disclosure of private information (Wang and Kannan, 2013), which in turn reduces the accuracy of analysts' private information.…”