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Business, Government, and the Information Environment: Stock Trading and Earnings Shocks in China, Indonesia, and Singapore

Author

Listed:
  • Warren Bailey

    (Johnson Graduate School of Management, Cornell University)

  • Yuan Gao

    (Johnson Graduate School of Management, Cornell University)

  • Connie X. Mao

    (Department of Finance, The Fox School of Business and Management, Temple University)

Abstract

We examine stock market behavior around earnings announcements in three countries with different degrees of government involvement with corporations. We find evidence consistent with insider trading in shares of politically connected Indonesian companies. We find little comparable evidence for Singapore. For China, government regulation appears associated with insider trading. Thus, national economic, legal, and regulatory characteristics seem to affect the information environment in capital markets.

Suggested Citation

  • Warren Bailey & Yuan Gao & Connie X. Mao, 2004. "Business, Government, and the Information Environment: Stock Trading and Earnings Shocks in China, Indonesia, and Singapore," Annals of Economics and Finance, Society for AEF, vol. 5(1), pages 165-195, May.
    • Handle: RePEc:cuf:journl:y:2004:v:5:i:1:p:165-195
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    References listed on IDEAS

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    Cited by:

    1. Borisova, Ginka & Yadav, Pradeep K., 2015. "Government ownership, informed trading, and private information," CFR Working Papers 15-13, University of Cologne, Centre for Financial Research (CFR).
    2. Borisova, Ginka & Yadav, Pradeep K., 2015. "Government ownership, informed trading, and private information," Journal of Corporate Finance, Elsevier, vol. 33(C), pages 196-211.

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    More about this item

    Keywords

    Information environment; Disclosure; Emerging markets; Corruption;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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