Internal Control Over Financial Reporting and Managerial Rent Extraction: Evidence from the Profitability of Insider Trading
نویسندگان
چکیده
منابع مشابه
Insider Trading, Costly Monitoring, and Managerial Incentives
In this paper we show, in an incomplete contracts framework that combines asymmetric information and moral hazard, that by permitting insiders to trade on personal account the equilibrium level of output can be increased and shareholder welfare can be improved. There are two reasons for this. First, insider trading impounds information regarding the costs and benefits of effort and perk consump...
متن کاملDoes Ineffective Internal Control over Financial Reporting affect a Firm’s Operations? Evidence from Firms’ Inventory Management
We investigate whether ineffective internal control over financial reporting has implications for firm operations by examining the association between inventoryrelated material weaknesses in internal control over financial reporting and firms’ inventory management. We find that firms with inventory-related material weaknesses have systematically lower inventory turnover ratios and are more like...
متن کاملFinancial Reporting Delay and Investors Behavior: Evidence From Tunisia
This study empirically investigates the relationship between the timeliness of the financial reporting and the corporate governance proxies for companies listed on the Tunisian stock exchange during 2009.It investigates the role of the corporate governance mechanisms on the timeliness of corporate financial reporting besides; it investigates the relationship between the company size, leverage, ...
متن کاملThe Timing and Profitability of Insider Trading in Canada
This paper examines the timing and profitability of insider trading in Canada from 1987 to 2000. In contrast to studies done on earlier time periods, we find that insiders are net sellers of shares. This is especially true of senior officers who sell nearly seven shares for every share they purchase. We attribute this change to the increased use of stock options as compensation. Insiders are sh...
متن کاملThe Informative Content of CEO and CFO Insider Trading: New Evidence from the Financial Crisis
This paper investigates the impact of CEO and CFO insider purchases on stock returns. The analysis distinguishes between the opportunistic and routine trades made before, during and after the financial crisis of 2007-2008. The results suggest that the informative content of insider trading is weaker than what prior research suggests. The returns on purchases are stronger in the short term and C...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2012
ISSN: 1556-5068
DOI: 10.2139/ssrn.1928557