Abstract
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 language | English |
|---|---|
| Article number | 100847 |
| Journal | Emerging Markets Review |
| Volume | 51 |
| DOIs | |
| State | Published - Jun 2022 |
Keywords
- Adverse selection
- Analyst report
- Difference-in-differences
- Emerging stock market
- Information asymmetry
- Insider trading
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