In this paper, we investigate the information content of the insider trading. We use book to market ratio to judge the stock price of the firms which tend to be overvalued or undervalued. We suppose that the higher the book to market ratio is, the more the insider buy; vice versa. According to the past papers, seasoning equity offering often happens when the stock price is overvalued. On the other hand, the stock repurchase often happens when the stock price is undervalued. As a result, we propose that if the seasoning equity offering happens, the insiders will sell more holding stocks. If the stock repurchase happens, the insiders will buy more holding stocks. Besides, we try to understand if we can use the insider trading and the book to market ratio to be the signal of seasoning equity offerings or stock repurchase. These empirical results are not the same as our hypotheses because of the specific reason¡Xmost of the corporations in the sample are operated by family. Therefore, they won¡¦t sell their stocks easily. We have to understand the real trading motivation in the subsequences study.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0625106-014647 |
| Date | 25 June 2006 |
| Creators | Yen, Kuei |
| Contributors | Chinshun Wu, Anlin Chen, Jen-Jsung Huang |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0625106-014647 |
| Rights | withheld, Copyright information available at source archive |
Page generated in 0.0019 seconds