Under Consideration at Referee Journals
- A Comparison of the Performance of Valuation Models: Evidence from Cross-listed Firms in the U.S.
- Does Corporate Reputation Translate into Higher Market Value?
- Does Pre-Deal Research Reduce IPO Underpricing? A Comparison of Different Regulatory Regimes
Working in Progress
- Are Insider Sales Informative? Evidence Based on Large Open Market Sales by the Top Executives and Their Diversification Motive
Abstract: Prior research shows that insider sales have weak informational value. We attribute this to a failure to incorporate samples of large transactions and diversification motives of the insiders. We contend that stock sales not motivated by portfolio diversification will have a strong negative implication. Our findings show negative stock price reactions around large open market sales by the top executives and a subsequent drop in firm’s earnings. Using stock option awards as an indicator of diversification, we find results contrary to our contention. Our data show higher negative returns and declining earnings in firms with large option grants. These findings are of apparent interests to academies as well as market participants.
- Auditing fee and auditor industry expertise in China: Evidence from the two-tier auditing system.
- Do stockholders blame managerial fraud on corporate governance? Evidence from backdating of stock options
|
