Insider Trading Activities Before the Simultaneous Announcements of Earnings and Dividends

Louis T. W. Cheng (), Ricky W. F. Szeto () and T. Y. Leung ()
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Louis T. W. Cheng: School of Accounting and Finance, Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong, China
Ricky W. F. Szeto: Department of Business Administration, Hong Kong Shue Yan College, Braemar Hill, North Point, Hong Kong, China
T. Y. Leung: Department of Accountancy, Hong Kong Shue Yan College, Braemar Hill, North Point, Hong Kong, China;

Review of Pacific Basin Financial Markets and Policies (RPBFMP), 2005, vol. 08, issue 02, 279-307

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.

Keywords: Insider trading; earnings management; dividends (search for similar items in EconPapers)
JEL-codes: G1 G2 G3 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (2)

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DOI: 10.1142/S0219091505000385

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