Insider trading in the Hong Kong stock market

Michael C. S. WONG, Yan Leung Stephen CHEUNG, Lifan WU

Research output: Contribution to journalArticles

11 Citations (Scopus)

Abstract

Many previous studies on insider trading are based on data in the U.S. capital market and conclude that insiders can earn abnormal profits. This paper examines abnormal price performance associated with insider trading in the Hong Kong stock market. We find that abnormal profits associated with insider trading are all concentrated on small firms. Trading volume does matter in determining the magnitude of those abnormal profits. Our results show that insiders of medium-sized and large firms do not earn abnormal profits. Finally, it is found that outsiders who mimic the information of insider trades associated with medium-sized and large firms cannot earn abnormal profits. Copyright © 2000 Kluwer Academic Publishers.

Original languageEnglish
Pages (from-to)275-288
JournalAsia-Pacific Financial Markets
Volume7
Issue number3
DOIs
Publication statusPublished - Sep 2000

Citation

Wong, M. C. S., Cheung, Y.-L., & Wu, L. (2000). Insider trading in the Hong Kong stock market. Asia-Pacific Financial Markets, 7(3), 275-288.

Keywords

  • Hong Kong stock market
  • Insider trading
  • Market efficiency

Fingerprint Dive into the research topics of 'Insider trading in the Hong Kong stock market'. Together they form a unique fingerprint.