Information Content of Insider Trading Around Seasoned Equity Offering

2003 ◽  
Author(s):  
Oliver M. Rui ◽  
Michael Firth ◽  
Ken Ching
Keyword(s):  
Information Content ◽  
Insider Trading ◽  
Seasoned Equity Offering ◽  
Equity Offering

scholarly journals New Evidence On The Effectiveness Of The Insider Trading Sanctions Act Of 1984

2011 ◽  
Vol 17 (2) ◽  
Author(s):  
Michael Gombola ◽  
Hei Wai Lee ◽  
Feng-Ying Liu
Keyword(s):  
Insider Trading ◽  
Strong Evidence ◽  
Trading Behavior ◽  
Font Size ◽  
Limited Evidence ◽  
Seasoned Equity Offering ◽  
New Approach ◽  
Announcement Date ◽  
New Evidence ◽  
Equity Offering

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="letter-spacing: -0.15pt;"><span style="font-size: x-small;"><span style="font-family: Batang;">This study examines the effectiveness of the Insider Trading Sanctions Act (ITSA) of 1984 by employing a new approach. This approach examines the effect of ITSA in changing insider trading behavior around seasoned equity offering (SEO) announcements. Results of this study provide strong evidence of deferred net selling by insiders until after the SEO announcement date. Deferred net selling is evident for both the pre-ITSA and post-ITSA periods. We find limited evidence showing that the deferred net selling is significantly increased after passage of ITSA. Any effect of ITSA predominantly affects broad trading, rather than concentrated trading.</span></span></span></p>

Does insider trading have information content for the bond market?

1996 ◽  
Vol 20 (3) ◽  
pp. 555-575 ◽  
Author(s):  
Sudip Datta ◽  
Mai E. Iskandar-Datta
Keyword(s):  
Information Content ◽  
Insider Trading ◽  
Bond Market

Evidence of Selling by Managers after Seasoned Equity Offering Announcements

1997 ◽  
Vol 26 (3) ◽  
pp. 37 ◽  
Author(s):  
Michael Gombola ◽  
Hei Wai Lee ◽  
Feng-Ying Liu
Keyword(s):  
Seasoned Equity Offering ◽  
Equity Offering

scholarly journals How international competitiveness moderates the relationship between corporate governance and seasoned equity offering underpricing

2017 ◽  
Vol 14 (4) ◽  
pp. 314-327
Author(s):  
Fu-Jiing Shiue ◽  
Yi-Yin Yen
Keyword(s):  
Corporate Governance ◽  
Stock Price ◽  
International Competitiveness ◽  
Corporate Management ◽  
International Expansion ◽  
Seasoned Equity Offering ◽  
Market Participants ◽  
Premium Price ◽  
The Relationship ◽  
Equity Offering

When a company exhibits favorable management performance, investors may have higher intention to purchase its stock at a premium price; the company may also make more desirable decisions in international expansion, attain higher international competitiveness, win the preference of investors, and thus exhibit a higher stock price, which results in higher seasoned equity offering (SEO) underpricing. Therefore, international competitiveness possibly plays a crucial moderating role between corporate governance and SEO underpricing. The empirical results of this study show that compared with government-controlled companies, international competitiveness strengthens the relationship of SEO underpricing with one-family-controlled companies, two-or-more family-controlled companies, and manager-controlled companies. Accordingly, companies should improve their international competitiveness and conduct favorable corporate management to elicit the investment intention of market participants worldwide.

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