Insider trading returns and dividend signals

被引：12

作者：

Cheng, Louis T. W. ^{[1
]}

Davidson, Wallace N., III ^{[2
]}

Leung, T. Y. ^{[3
]}

机构：

[1] Hong Kong Polytech Univ, Sch Accounting & Finance, Kowloon, Hong Kong, Peoples R China

[2] So Illinois Univ, Dept Finance, Carbondale, IL 62903 USA

[3] City Univ Hong Kong, Dept Accountancy, Kowloon Tong, Hong Kong, Peoples R China

来源：

INTERNATIONAL REVIEW OF ECONOMICS & FINANCE | 2011年 / 20卷 / 03期

关键词：

Dividends; Earnings; Insider trading; Information asymmetry; SEASONED EQUITY OFFERINGS; EARNINGS MANAGEMENT; EMPIRICAL-EVIDENCE; STOCK-PRICES; MARKET-EFFICIENCY; FUTURE EARNINGS; CASH FLOWS; ANNOUNCEMENTS; INFORMATION; PERFORMANCE;

D O I：

10.1016/j.iref.2010.11.016

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

The literature shows that insider trading activities and dividends contain information content and serve as signals to firm value. If insider return is a proxy for information asymmetry, we should expect a positive relation between dividends and insider returns. Using a sample of unambiguous (good and bad) news concerning earnings and dividend announcements from Hong Kong firms, we show that information asymmetry is stronger for bad news firms with insider sales than good news firms with insider purchases. In addition, we improve the methodology of Khang and King [Khang, K., & King, T. H. D. (2006). Does dividend policy relate to cross-sectional variation in information asymmetry? Evidence from returns to insider trades. Financial Management, 35, 71-94] and provide evidence that dividend is a credible signal for measuring information asymmetry. (C) 2010 Elsevier Inc. All rights reserved.

引用

页码：421 / 429

页数：9

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