Insider trading and information asymmetry: Evidence from the Korea Exchange

Doojin Ryu, Heejin Yang, Jinyoung Yu*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

14 Citations (Scopus)


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.

Original languageEnglish
Article number100847
JournalEmerging Markets Review
Publication statusPublished - Jun 2022
Externally publishedYes


  • Adverse selection
  • Analyst report
  • Difference-in-differences
  • Emerging stock market
  • Information asymmetry
  • Insider trading


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