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

Author Info

Listed author(s):
  • 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)

Registered author(s):

    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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    File URL: http://www.aeconf.net/Articles/May2004/aef050108.pdf
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    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
    Contact details of provider: Web page: http://www.aeconf.net/

    More information through EDIRC

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

    Find related papers by JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

    References listed on IDEAS
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    Cited by:

    1. Borisova, Ginka & Yadav, Pradeep K., 2015. "Government ownership, informed trading, and private information," CFR Working Papers 15-13, University of Cologne, Centre for Financial Research (CFR).
    2. Borisova, Ginka & Yadav, Pradeep K., 2015. "Government ownership, informed trading, and private information," Journal of Corporate Finance, Elsevier, vol. 33(C), pages 196-211.

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