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Investigate the Effect of Insider-Trading Scandal on Taiwan Stock Price Adjustment
Insider-trading;Scandal;Stock prices;Securities market;Event study method
|Issue Date: ||2013-07-11T09:04:59Z
This study focuses the impact of the unethical business conduct of an individual that shook the financial market in 2006. We adopt an event study statistical method to assess the impact of an event on the value of a firm. Furthermore, the wealth status of the shareholders of the securities firm was examined in relation to the public disclosure of the insider-trading scandal. The result shows that (1) When the government investigate about the company's insider-trading initially, had not been fully revealed and it was thought to be an isolated event. However, further disclosures bring about the negative impacts for a long time. (2) Insider-trading scandals cause some variations of stock prices and securities market. (3) After the insider-trading brings a case to court, the standard abnormal returns are negative and then gradually increased. It indicates that investors have little sense on declaration date and make some decisions a day later. (4) The results present that the insider will generate personal short-term profits, but other shareholders and companies were victimized financially. So, the rules of insider-trading can protect the fair of capital markets.
|Relation: ||智慧科技與應用統計學報, 9(2): 69-82|
|Appears in Collections:||[企業管理學系] 期刊論文|
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