Public disclosure, information leakage, and strategic trading

- I extend the Huddart et al. (2001)'s model by considering the information leakage.
- The insider trades more honestly with information leakage.
- The price is more informative efficient with information leakage.

Based on Huddart et al. (2001)'s model, this work shows that the insider injects less noise into the mixed strategy and exploits the information advantage faster when there is a risk of information leakage.