A Study on the Relationship between Insider Trading and Analyst Recommendations and Its Relative Incremental Information Contents

• Main Authors: Hsin-Yueh Hus, 許馨月
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/09024062831632154224

碩士 === 中原大學 === 會計研究所 === 95 === The concern of this study focuses on the information content of insider trading and analyst recommendations relationship between the public companies of Taiwan Stock Exchange in 2004 and 2006. Samples are divided into two groups including insider trading happened earlier and analyst recommendations happened earlier. Further, the information content of two events successively and the incremental information value from happened later event to happened earlier event have been examined. According to the empirical results, three reasonable inferences could be obtained. First, the insider trading event and the analyst recommendations event possess negative and positive information content respectively. Both two events have information content. Second, in the insider trading happened earlier event group, only the insider trading happened earlier event still has negative information content. However, the analyst recommendations happened later event has no information content and relative incremental information value. Finally, in the analyst recommendations happened earlier event group, the analyst recommendations happened earlier event and insider trading happened later event both have positive and negative information content respectively. Then, the incremental information value from the insider trading happened later event to the analyst recommendations happened earlier event is obvious.