Information leakage in family firms: Evidence from short selling around insider sales

Hanwen Sun, Shuxing Yin

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Using a novel insider trading and short selling dataset from the Hong Kong Stock Exchange (HKEx), we investigate potential information leakage from corporate insiders to short sellers, particularly in family firms. Even without the presence of market makers in the HKEx, we document a significant increase in short selling volume before insider trades are released to the public. The non-monotonic relationship between the short selling intensity and family control contributes to the debate on whether family presence facilitates or limits information leakage. In addition, trading by non-family insiders is more likely to convey private information, as compared to family insiders.
Original languageEnglish
Pages (from-to)72-87
Number of pages16
JournalJournal of Corporate Finance
Volume47
Early online date8 Sep 2017
DOIs
Publication statusPublished - 31 Dec 2017

Fingerprint Dive into the research topics of 'Information leakage in family firms: Evidence from short selling around insider sales'. Together they form a unique fingerprint.

Cite this