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Business, Government, and the Information Environment: Stock Trading and Earnings Shocks in China, Indonesia, and Singapore

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Author Info

  • Warren Bailey

    ()
    (Johnson Graduate School of Management, Cornell University)

  • Yuan Gao

    ()
    (Johnson Graduate School of Management, Cornell University)

  • Connie X. Mao

    ()
    (Department of Finance, The Fox School of Business and Management, Temple University)

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    Abstract

    We examine stock market behavior around earnings announcements in three countries with different degrees of government involvement with corporations. We find evidence consistent with insider trading in shares of politically connected Indonesian companies. We find little comparable evidence for Singapore. For China, government regulation appears associated with insider trading. Thus, national economic, legal, and regulatory characteristics seem to affect the information environment in capital markets.

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    Bibliographic Info

    Article provided by Society for AEF in its journal Annals of Economics and Finance.

    Volume (Year): 5 (2004)
    Issue (Month): 1 (May)
    Pages: 165-195

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    Handle: RePEc:cuf:journl:y:2004:v:5:i:1:p:165-195

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    Related research

    Keywords: Information environment; Disclosure; Emerging markets; Corruption;

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