We employ a sample of 3,177 events from Hong Kong industrial firms during the 1993-1999 period to examine insider trading activities around earnings and dividends announcements. By controlling for earnings management, special dividends, and other firm level financial indicators, we find that the presence of insider trading, its trading direction, and its trading intensity are related to the signals of these simultaneous earnings and dividends announcements. Various tests show that our findings are robust regardless of the proxies used for measuring insider trading activities, earnings, and dividend changes. and Center for Pacific Basin Business, Economics and Finance Research.
|Number of pages||29|
|Journal||Review of Pacific Basin Financial Markets and Policies|
|Publication status||Published - 1 Jun 2005|
- Earnings management
- Insider trading
ASJC Scopus subject areas
- Economics and Econometrics