Has the Informativeness of Insider Filing Changed Post-SOX? Has the Latest Credit Crunch Improved this Informativeness?

33 Pages Posted: 25 Dec 2010 Last revised: 24 Feb 2011

See all articles by Ashrafee T Hossain

Ashrafee T Hossain

Memorial University of Newfoundland (MNU) - Faculty of Business Administration

Harjeet S Bhabra

John Molson School of Business, Concordia University

Date Written: December 14, 2010

Abstract

This paper examines the information content of Form 4filings under the stricter disclosure regulations introduced by the Sarbanes-Oxley Act (SOX). Abnormal returns around filing have been used to measure information content. Insider ranking was found to be the most influential variable explaining the information content of the filing. A comparison study between pre- and post-SOX for both purchase and sale sample has provided evidence that information content of filing has improved. This is the first study provide evidence that information content of form 4 filings have improved after the recent credit crunch.

Keywords: SOX, Credit Crunch, Information content, Form 4, insider trading

JEL Classification: G38, G28

Suggested Citation

Hossain, Ashrafee T and Bhabra, Harjeet S, Has the Informativeness of Insider Filing Changed Post-SOX? Has the Latest Credit Crunch Improved this Informativeness? (December 14, 2010). Available at SSRN: https://ssrn.com/abstract=1731082 or http://dx.doi.org/10.2139/ssrn.1731082

Ashrafee T Hossain (Contact Author)

Memorial University of Newfoundland (MNU) - Faculty of Business Administration ( email )

St. John's, Newfoundland A1B 3X5
Canada

Harjeet S Bhabra

John Molson School of Business, Concordia University ( email )

Montreal, Quebec H3G 1M8
Canada

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
140
Abstract Views
1,368
rank
258,368
PlumX Metrics