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Selective Disclosure Associated with Institutional Investors: Evidence Based on Chinese Stock Market

Author

Listed:
  • Ting Luo

    () (School of Economics and Management, Tsinghua University)

  • Zhiguo Xiao

    () (School of Management, Fudan University)

Abstract

This paper investigates the phenomenon of selective disclosure associated with institutional investors in Chinese stock market. Based on a unique database that reveals the daily trading and the identities of institutions, we show that institutions on average possess private information regarding public firms’ impending non-earnings significant news. More importantly, we show that the information advantage of institutions is associated with their abil- ity to obtain private information from firm management. The findings shed light on the issue of developing fair information disclosure among all market participants.

Suggested Citation

  • Ting Luo & Zhiguo Xiao, 2015. "Selective Disclosure Associated with Institutional Investors: Evidence Based on Chinese Stock Market," Annals of Economics and Finance, Society for AEF, vol. 16(2), pages 515-542, November.
  • Handle: RePEc:cuf:journl:y:2015:v:16:i:2:luo
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Information environment; Stock market; Selective information disclosure; Institutional investors;

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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