Fraudulently misstated financial statements and insider trading: An empirical analysis

• 成果类型: Article
• 署名作者: Summers, SL; Sweeney, JT
• 署名单位: University of Missouri System; University of Missouri Columbia
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• 发表日期: 1998
• 页码: 131-146
• 关键词: information; Auditors; lawsuits

摘要

This study investigates the relationship between insider trading and fraud. We find that in the presence of fraud, insiders reduce their holdings of company stock through high levels of selling activity as measured by either the number of transactions, the number of shares sold, or the dollar amount of shares sold. Moreover, we present evidence that a cascaded logit model, incorporating insider trading variables and firm-specific financial characteristics, differentiates companies with fraud from companies without fraud.