haku: @author Ali, A. / yhteensä: 17
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| Tekijä: | Ali, A. Klasa, S. Li, O.Z. |
| Otsikko: | Institutional stakeholdings and better-informed traders at earnings announcements |
| Lehti: | Journal of Accounting & Economics
2008 : SEP, VOL. 46:1, p. 47-61 |
| Asiasana: | trading stakeholders disclosure institutions earnings |
| Kieli: | eng |
| Tiivistelmä: | A previous study by Utama and Cready (1997. Institutional ownership, differential predisclosure precision and trading volume at announcement dates. Journal of Accounting and Economics 24, 129-150) uses total institutional ownership to proxy for the proportion of better-informed traders, an important determinant of trading around earnings announcements. This paper argues that institutions holding small stakes cannot justify the fixed cost of developing private predisclosure information. The institutions with large stakes, also, generally do not trade around earnings announcements since they are dedicated investors or face regulations making informed trading difficult. Institutions holding medium stakes, however, have incentives to develop private predisclosure information and trade on it; this paper shows that their ownership is a finer proxy for the proportion of better-informed traders at earnings announcements. |
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