Does high-quality corporate communication reduce insider trading profitability?

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• 作者：Debby Van Geyt ; Philippe Van Cauwenbergep> ; p>p>philippe.vancauwenberge@ugent.be" class="auth_mailp> ; Heidi Vander Bauwhede
• 关键词：G10 ; G14 ; G34
• 刊名：International Review of Law and Economics
• 出版年：March, 2014
• 年：2014
• 卷：37
• 期：Complete
• 页码：1-14
• 全文大小：1046 K

文摘

Exploring a unique database on insider trading in Belgium, we investigate whether high-quality corporate communication contributes to reducing insider trading profitability and information asymmetry. Using disclosure scores of professional financial analysts as a proxy for communication quality, we find a significant negative association between corporate communication quality and insider trading profitability. Closer inspection of different communication channels shows that the quality of annual reports, press releases and investor relation activities is more relevant in explaining insiders鈥?abnormal returns than the quality of corporate websites.