| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 7340280 | Advances in Accounting | 2014 | 7 Pages |
Abstract
The evidence from prior literature suggests that insider trading is related to firms' reported financial results and disclosure choices. I contribute to the literature by examining the association between narrative disclosure in earnings announcements and insider trading. Specifically, I hypothesize and find a positive association between changes in the optimistic tone of earnings announcements and CEOs' subsequent equity sales. In addition, I hypothesize and find that this relation is mitigated by the Sarbanes-Oxley Act and litigation risk. CEOs' financial gain from selling equity after more optimistic earnings announcements is small relative to their total compensation.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Isho Tama-Sweet,