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
Date Written: December 14, 2010
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: Suggested Citation
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