Abstract

http://ssrn.com/abstract=2235054
 
 

References (26)



 
 

Footnotes (7)



 


 



The Role of the Media in Disseminating Insider-Trading News


Jonathan L. Rogers


University of Colorado at Boulder - Leeds School of Business

Douglas J. Skinner


The University of Chicago - Booth School of Business

Sarah L. C. Zechman


University of Colorado at Boulder - Leeds School of Business

February 1, 2016

Review of Accounting Studies, Forthcoming
Chicago Booth Research Paper No. 13-34
Fama-Miller Working Paper

Abstract:     
We use the process through which insider trading (SEC Form 4) filings are made public to investigate whether media coverage affects the way securities markets assimilate news. To do this, we utilize recent changes in disclosure rules governing insider trades as well as the initiation of coverage by Dow Jones to cleanly identify media effects. Using high-resolution intraday data, we find clear effects of media dissemination on the way prices and volume respond to insider trading news in the minutes after its release. These results help to resolve open questions regarding the role of the media in capital markets, including why apparently “second hand” news affects securities prices.

Number of Pages in PDF File: 43

Keywords: Insider trading, disclosure, dissemination, media

JEL Classification: G14, G18, M40


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Date posted: March 19, 2013 ; Last revised: March 1, 2016

Suggested Citation

Rogers, Jonathan L. and Skinner, Douglas J. and Zechman, Sarah L. C., The Role of the Media in Disseminating Insider-Trading News (February 1, 2016). Review of Accounting Studies, Forthcoming; Chicago Booth Research Paper No. 13-34; Fama-Miller Working Paper. Available at SSRN: http://ssrn.com/abstract=2235054 or http://dx.doi.org/10.2139/ssrn.2235054

Contact Information

Jonathan L. Rogers
University of Colorado at Boulder - Leeds School of Business ( email )
419 UCB
Boulder, CO 80309-0419
United States
Douglas J. Skinner (Contact Author)
The University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-7137 (Phone)

Chicago Booth School of Business Logo

Sarah L. C. Zechman
University of Colorado at Boulder - Leeds School of Business ( email )
Boulder, CO 80309-0419
United States
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