Insider trading and response to earnings announcements: the impact of accelerated disclosure requirements

摘要: This paper contributes to the debate on consequences of increased disclosure regulation by investigating effects expedited reporting requirements Form 4 filings, mandated Sarbanes–Oxley Act (SOX), market response earnings announcements. We first confirm that SOX reduces opportunistic insider trading without deterring due diversification needs, and post-SOX, trades more strongly reveal upcoming surprises. then document that, at announcement date, coefficients (ERCs) are lower when preceded trades. conclude accelerated disclosures transactions lend informationally efficient prices prior Our findings stand as one piece evidence suggesting positive externalities from recent Securities Exchange Commission (SEC) add scarce changes in filing requirements.