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Information asymmetry and the information content of insider trades: Evidence from the Indian stock market
, Chauhan Y, Chaturvedula C
Published in Elsevier
2016
Volume: 34
   
Pages: 65 - 79
Abstract

This paper investigates a proprietary dataset of insider trades for Indian listed firms, where controlling ownership and business groups dominate. We show that the information content of insider trading is an inverted U-shaped function of controlling ownership. Further, we find that the information content of insider trading is lower when firms are affiliated with a business group. We also show that information production depends on the degree of information asymmetry between insiders and outsiders. Finally, we find that insider trades that occur prior to an earnings announcement have a larger impact on stock prices.

About the journal
JournalData powered by TypesetJournal of Multinational Financial Management
PublisherData powered by TypesetElsevier
ISSN1042-444X
Open AccessNo