A Study on the Relation among Block Trading, Stock Prices and Operating Performance

• Main Authors: Yue-Fang Wen, 溫育芳
• Other Authors: Long-Chi Chen
• Format: Others
• Language: zh-TW
• Published: 2001
• Online Access: http://ndltd.ncl.edu.tw/handle/42644264067280819444

博士 === 國立政治大學 === 企業管理學系 === 89 === In view of the signaling theory, this paper investigates the relation among block trading, operating performance and stock prices. By regarding block trading as a signal of future operating performance, this paper develops a theoretical model and discusses the effects of different types of block trading on stock prices under different conditions of future operating performance. With 100 events of block trading from 1995 to 1999, empirical results via event study support the signaling effect of block trading on future operating performance. Besides, under the control variables of industry, market status, company size and size of block trading, ordinary least squares regression results suggest that buyer-initiated blocks of insiders cause the abnormal return of stock significantly larger than non-insider trading when the future operating performance is good.