TY - JOUR
T1 - Insider trading and information asymmetry
T2 - Evidence from the Korea Exchange
AU - Ryu, Doojin
AU - Yang, Heejin
AU - Yu, Jinyoung
N1 - Publisher Copyright:
© 2021
PY - 2022/6
Y1 - 2022/6
N2 - This study examines whether pre-announcement insider trading significantly resolves or intensifies information asymmetry in the Korean emerging stock market. Local institutions are the most informed and trade in the right direction before analyst report announcements. Such insider trading increases post-announcement information asymmetry or adverse selection costs. Notably, local retail investors' trading behavior synchronizes with that of local institutions after pre-announcement insider trading.
AB - This study examines whether pre-announcement insider trading significantly resolves or intensifies information asymmetry in the Korean emerging stock market. Local institutions are the most informed and trade in the right direction before analyst report announcements. Such insider trading increases post-announcement information asymmetry or adverse selection costs. Notably, local retail investors' trading behavior synchronizes with that of local institutions after pre-announcement insider trading.
KW - Adverse selection
KW - Analyst report
KW - Difference-in-differences
KW - Emerging stock market
KW - Information asymmetry
KW - Insider trading
UR - http://www.scopus.com/inward/record.url?scp=85114364690&partnerID=8YFLogxK
U2 - 10.1016/j.ememar.2021.100847
DO - 10.1016/j.ememar.2021.100847
M3 - Article
AN - SCOPUS:85114364690
SN - 1566-0141
VL - 51
JO - Emerging Markets Review
JF - Emerging Markets Review
M1 - 100847
ER -