Insider trading activities before the simultaneous announcements of earnings and dividends

Tsz Wan Cheng; Ricky W.F. Szeto; T. Y. Leung

doi:10.1142/S0219091505000385

Insider trading activities before the simultaneous announcements of earnings and dividends

Tsz Wan Cheng, Ricky W.F. Szeto, T. Y. Leung

Research output: Journal article publication › Journal article › Academic research › peer-review

5 Citations (Scopus)

Abstract

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.

Original language	English
Pages (from-to)	279-307
Number of pages	29
Journal	Review of Pacific Basin Financial Markets and Policies
Volume	8
Issue number	2
DOIs	https://doi.org/10.1142/S0219091505000385
Publication status	Published - 1 Jun 2005

Keywords

Dividends
Earnings management
Insider trading

ASJC Scopus subject areas

Finance
Economics and Econometrics

More information

10.1142/S0219091505000385

Cite this

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AB - 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.

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Insider trading activities before the simultaneous announcements of earnings and dividends

Abstract

Keywords

ASJC Scopus subject areas

More information

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