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The Relationship between Insider Trading and Operating Performance, and Factors Associated with the Types of Insider Trading in Taiwan
Insider trading;Abnormal returns;Operating performance
|Issue Date:||2017-11-15 15:58:30 (UTC+8)|
This paper investigates the relationship between insider trading and abnormal stock returns and post-trading operating performance, and explores factors associated with the types of insider trading. We find that, following insiders buying, abnormal stocks returns are positive and last for three months, while insiders selling results in negative abnormal returns in the long run. As for post-trading operating performance, companies with insiders buying tend to out-perform those with insiders selling. Following insiders buying in the initial stage of bull markets, companies tend to have better subsequent operating performance when large companies having poor previous operating performance and less growth opportunities. Finally, insiders tend to practice insiders buying for companies having good previous operating performance, large sizes, relative low stock prices, and negative abnormal stock returns in previous one year. We also find companies of traditional industries and during bear markets are more likely to have insider buying trading.
|Relation:||會計評論, 41, 33-51|
|Appears in Collections:||[會計評論] 期刊論文|
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