The employee shares of Guilin Jiqi became tradable in stock exchanges from June 2000. The firm coincidently made up her profit disclosed in the semi-annual report. After ruling out other explanations, we find that the...The employee shares of Guilin Jiqi became tradable in stock exchanges from June 2000. The firm coincidently made up her profit disclosed in the semi-annual report. After ruling out other explanations, we find that the fraud of Guilin Jiqi seems to be intended to help her employees （not including top managers） to reap profits at the expense of misled investors. Our findings offer a potential insight into relating employee shares to insider selling.展开更多
This study examines the relationship between earnings quality and insider trading. Using downward earnings restatement firms to identify low-quality earnings, we find that insiders outsell non-earnings restatement fir...This study examines the relationship between earnings quality and insider trading. Using downward earnings restatement firms to identify low-quality earnings, we find that insiders outsell non-earnings restatement firms of their holdings over the period from two years before to one year after the beginning of the restatement period. In addition, the amounts of restatement are positively associated with the excess insider selling. We also provide evidence that excess insider selling predicts excessive earnings manipulations that eventually lead to GAAP （Generally Accepted Accounting Principles） violation. Some researchers argued that insider trading can be an efficient way of transferring insider information to the capital markets. Our evidence of intensive insider selling in the context of earnings restatements implies that insiders disregard their fiduciary duties to the shareholders during the periods of deteriorating financial performance.展开更多
文摘The employee shares of Guilin Jiqi became tradable in stock exchanges from June 2000. The firm coincidently made up her profit disclosed in the semi-annual report. After ruling out other explanations, we find that the fraud of Guilin Jiqi seems to be intended to help her employees （not including top managers） to reap profits at the expense of misled investors. Our findings offer a potential insight into relating employee shares to insider selling.
文摘This study examines the relationship between earnings quality and insider trading. Using downward earnings restatement firms to identify low-quality earnings, we find that insiders outsell non-earnings restatement firms of their holdings over the period from two years before to one year after the beginning of the restatement period. In addition, the amounts of restatement are positively associated with the excess insider selling. We also provide evidence that excess insider selling predicts excessive earnings manipulations that eventually lead to GAAP （Generally Accepted Accounting Principles） violation. Some researchers argued that insider trading can be an efficient way of transferring insider information to the capital markets. Our evidence of intensive insider selling in the context of earnings restatements implies that insiders disregard their fiduciary duties to the shareholders during the periods of deteriorating financial performance.
