| Summary: | 碩士 === 國立嘉義大學 === 企業管理學系 === 100 === Abstract
The current research aims to investigate the following issues: (1) whether there is a significant relationship between the market returns of asset write-downs announcements and the changes in insiders’ shareholdings over the pre-announcement period, and (2) whether there is a significant relationship between the long-term market returns subsequent to asset write-downs announcements and the changes in insiders’ shareholdings over the pre-announcement period. Using a sample of listed and OTC firms with asset write-downs from January 1, 2004 to December 31, 2010, I conduct regression analyses to the above issues. According to the empirical evidence, this study finds that the market reaction of asset write-downs announcements is positively and significantly related to the changes in insiders’ shareholdings over the pre-announcement period. In addition, this study also finds the evidence supporting the positive relationship between long-term market returns of asset write-downs and the changes in insiders’ shareholdings over the pre-announcement period. These findings provide an implication that insider trading indeed plays an important role in conveying information to the market, particularly for those corporate decisions with ambiguous information nature.
Keywords: Asset write-downs, Insider trade, Information content
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