Insider trading activities around the world: a case study in East Asia

Abstract

This study investigated whether insiders exploit information advantage of their firms by trading stocks before the simultaneous earnings and dividend announcements around the world. Our findings show that there are significant net-insider-buying activities before the announcements of good news and significant net-insider-selling activities before bad news. What's more, 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.