dc.contributor.author | Tsoligkas, Fanis | |
dc.date.accessioned | 2015-04-23T08:50:43Z | |
dc.date.issued | 2014-10-17 | |
dc.description.abstract | This thesis presents three empirical studies investigating the capital market effects
of the interplay between financial reporting discretion and insider trading. The
empirical studies contribute to the emerging accounting literature which considers
managers’ private signal conveyed by means of their trading on their own firm’s
shares.
The first study examines whether the disclosure of directors trading improves
market efficiency and contributes to the long standing controversy in the literature
with regards to the informational efficiency of insider trading. The findings indicate
that insider trading assist market participants to assess the implications of current
for future earnings during an earnings announcement and consequently lead to
more efficient prices. However, the information in insider trading subsumes the
information in financial reporting discretion in this setting.
The second empirical chapter investigates the interplay between financial reporting
discretion and insider trading focusing on the setting of acquisitions financed with
equity whereby managers have incentives to manipulate earnings and the
opportunity to conceal the consequences from doing so. In this particular setting, it
is shown that a combination of financial reporting discretion aiming to inflate
earnings and insider purchases denoting overconfident managers is associated
with acquirers’ long term underperformance.
The third empirical chapter employs a setting characterised by an exogenous
constraint over financial reporting discretion over the capitalisation of R&D
expenditures. It is shown that constraining financial reporting discretion comes at
the expense of a loss of information about future earnings. Moreover, constraining
financial reporting discretion reduces also the usefulness of the insider purchases
disclosure as a means for assessing the motivation for capitalisation. | en_GB |
dc.identifier.uri | http://hdl.handle.net/10871/16966 | |
dc.language.iso | en | en_GB |
dc.publisher | University of Exeter | en_GB |
dc.rights.embargoreason | I intend to publish the three empirical chapters presented in the thesis | en_GB |
dc.title | Essays on Insider Trading and Financial Reporting Discretion | en_GB |
dc.type | Thesis or dissertation | en_GB |
dc.contributor.advisor | Dargenidou, Christina Jr | |
dc.publisher.department | University of Exeter Business School - Xfi Centre for Finance and Investment | en_GB |
dc.type.degreetitle | PhD in Finance | en_GB |
dc.type.qualificationlevel | Doctoral | en_GB |
dc.type.qualificationname | PhD | en_GB |