Insider Trading Behavior and News Announcement: Evidence from the Stock Exchange of Thailand
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چکیده
The purpose of this paper is to examine insider trading behavior reaction to news announcement by using firms listed on the Stock Exchange of Thailand during 2000 to 2008. By employing event-study approach, the results show that the information contents are significant to insider purchases but not to insider sales. In other words, only insider purchases can create abnormal returns. Moreover, corporate news disclosures greatly impact return especially insider sales. Trading before good news announcement shows significant abnormal return for both sales and purchases, in particular, insider purchases followed by good news greatly impact on prices.
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