Is there information content from insider trading activities preceding earnings and dividend announcements in Hong Kong?

Tsz Wan Cheng, T. Y. Leung

Research output: Journal article publicationJournal articleAcademic researchpeer-review

8 Citations (Scopus)


This study examines whether insiders (directors) exploit information advantage of their firms by trading stocks before the simultaneous earnings and dividend announcements in Hong Kong. Our findings show that there are significant net-insider-buying activities before the announcements of good news ('Earnings-Dividend Increase') and significant net-insider-selling activities before bad news ('Earnings-Dividend Decrease' and 'Earnings Decrease-Dividend Zero'). In addition, our regression results provide some support for the hypothesis that there is a predictive relation between pre-event insider trading activity and the abnormal return of the announcements.
Original languageEnglish
Pages (from-to)417-437
Number of pages21
JournalAccounting and Finance
Issue number3
Publication statusPublished - 1 Sep 2008


  • Corporate governance
  • Dividends
  • Earnings
  • Insider trading

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics, Econometrics and Finance (miscellaneous)

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