Taking Advantage of Transparency: the Relation between Public Information Transparency and Outside Director Trading Profitability.

Insider Trading;Outside Directors;Public Information Environment;Transparency;Economics;Business;Business Administration

Qu, TianshuLi, Feng ;

University of Michigan

关键词: Insider Trading;    Outside Directors;    Public Information Environment;    Transparency;    Economics;    Business;    Business Administration;   

Others  :  https://deepblue.lib.umich.edu/bitstream/handle/2027.42/99915/tianshuq_1.pdf?sequence=1&isAllowed=y

瑞士|英语

来源: The Illinois Digital Environment for Access to Learning and Scholarship

【 摘 要 】

This paper studies the relation between the transparency of a firm’s public information environment and the insider trading profitability of its outside directors. I compare the same outside director’s trading returns at different firms with different levels of public information transparency, and find that the same director makes higher purchase returns at firms with more transparent public information. Additional tests indicate that these findings are unlikely to be a result of variations in outside directors’ private information sets, or these directors’ litigation risks. Transparent public information thus appears to assist outside directors in forming their information sets and increasing their informational advantage over investors.