Title: Insider transfer trading of banking companies around exchange listing
Authors: Lo, KH
Wang, KL
Liao, TL
資訊管理與財務金融系 註:原資管所+財金所
Department of Information Management and Finance
Keywords: insider trading;bank listings;information content;emerging market
Issue Date: 1-Apr-2006
Abstract: This paper examines insider transfer trading of banking companies before and after their listing on the Taiwan Stock Exchange. During the pre-listing period, we uncover significantly negative abnormal returns after insiders announce their plans to transfer stocks, as well as significant price reversals following the subsequent disclosure of unfulfilled transfers. However, after listing, we observe little market response to the initial announcement, and nor is any price revision observed for partial/no transfer information. For both periods, the substantial increases in turnover provide further evidence on the flow of information from insider trading. Additionally, the propensity and profitability of insider transfers are documented. Overall, empirical results indicate that dissemination of information on insider transfer trading before listing can negatively influence the stock price, while information on insider transfers posted after listing attracts only limited attention. Consequently, the evidence is consistent with the implications associated with the managerial timing of listing decisions. (c) 2005 Elsevier Inc. All rights reserved.
URI: http://dx.doi.org/10.1016/j.jfi.2005.07.004
http://hdl.handle.net/11536/14365
ISSN: 1042-9573
DOI: 10.1016/j.jfi.2005.07.004
Journal: JOURNAL OF FINANCIAL INTERMEDIATION
Volume: 15
Issue: 2
Begin Page: 215
End Page: 234
Appears in Collections:Articles


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