Insider Trading and Financing Constraints

被引：18

作者：

Ataullah, Ali ^{[1
]}

Goergen, Marc ^{[2
]}

Le, Hang ^{[3
]}

机构：

[1] Loughborough Univ, Sch Business & Econ, Loughborough LE11 3TU, Leics, England

[2] Cardiff Univ, Cardiff Business Sch, European Corp Governance Inst, Brussels, Belgium

[3] Univ Nottingham, Sch Business, Nottingham, England

来源：

FINANCIAL REVIEW | 2014年 / 49卷 / 04期

关键词：

Insider trading; investment-cash flow sensitivity; financing constraints; information hierarchy hypothesis;

D O I：

10.1111/fire.12053

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Insider trading may alleviate financing constraints by conveying value-relevant information to the market (the information effect) or may exacerbate financing constraints by impairing market liquidity and distorting insiders' incentives to disclose value-relevant information (the confidence effect). We examine the significance of these two contrasting effects by investigating the link between insider trading and financing constraints as measured by the investment-cash flow sensitivity. We find that, overall insider trading exacerbates financing constraints; however the information effect dominates the confidence effect for insider purchases. Only trades by executive directors are significantly related to financing constraints.

引用

页码：685 / 712

页数：28

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