|
|
|
| The Information Content of Disclosure of Insider Share Purchase:Evidence from Post-Share Split Reform Period |
| SUN Gang |
|
|
|
|
Abstract Under institutional background of share split reform, the paper offers empirical evidences on information contents of insiders’ share purchases and its determinants. My findings indicate that cumulative abnormal return earned by investors with information disclosure of insider’ share purchase is higher with the increase of information uncertainty. When negative news such as quarterly earning loss is announced, insider share purchases would bring more adjustment of earning persistence and this phenomenon is more obvious for firms with more information uncertainty. The study indicates that information environment will have an important effect on investors’ earning expectation adjustment towards “bad news” sustainability and then the intensity and direction of market reactions towards insiders’ share purchases. In conclusion, the paper provides evidences on the interaction about informativeness of insider trading and accounting information.
|
|
Received: 26 May 2014
Published: 15 December 2014
|
|
Corresponding Authors:
SUN Gang
E-mail: sgcz2005@163.com
|
|
|
|
|
|
|
2014, Vol. 
浙公网安备 33011802000512号