| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 8954562 | Finance Research Letters | 2018 | 6 Pages |
Abstract
We examine the source of return predictability by insider trading in the setting of China's stock market from 2005 to 2016. We find that insiders' net share purchase contains favorable information about earnings beyond what is incorporated in the current stock market. We further show that the information contained in insiders trading is about operating rather than the non-operating component of earnings. We also find that firms with significant net share purchase are not associated with lower earnings quality afterwards. Overall, we provide evidence that insider trading delivers significant value-relevant information about earnings to the stock market.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Ying Qiu, Hua He, Gang Xiao,