Insider Trading in Hong Kong: Tests of Stock Returns and Trading Frequency

2011 ◽  
Vol 14 (03) ◽  
pp. 505-533 ◽  
Author(s):  
Michael Firth ◽  
T. Y. Leung ◽  
Oliver M. Rui
Keyword(s):  
United States ◽  
Hong Kong ◽  
Information Asymmetry ◽  
Stock Returns ◽  
Insider Trading ◽  
High Frequency ◽  
The United States ◽  
Trading Frequency ◽  
Trading Activities ◽  
Infrequent Trading

The main purpose of this paper is to examine the legal insider trading activities by directors of companies listed on the Hong Kong Exchange over the period 1993 to 1999. One characteristic of insider trading in Hong Kong is the high frequency of transactions and the large amounts of money involved. Inside purchases appear to signal and correct undervaluation and inside sales appear to signal and correct overvaluation. In contrast to research from Britain and the United States, insider sales are more informative than purchases. On average, insiders earn HK$91,297 per trade, while outsiders who mimic insiders' transactions earn minimal returns. Many firms suffer from infrequent trading and our results are consistent with directors engaging in inside transactions so as to help create a market for the shares. In additional tests, we find that the frequency of insider trading is a function of information asymmetry.

The readability of 10-K reports and insider trading profitability

2021 ◽  
pp. 031289622110251
Author(s):  
Dewan Rahman ◽  
Barry Oliver
Keyword(s):  
United States ◽  
Information Asymmetry ◽  
Insider Trading ◽  
Market Competition ◽  
The United States ◽  
Jel Classification ◽  
Product Market Competition ◽  
Strategic Information ◽  
Management Disclosures ◽  
Proprietary Cost

This study links the readability of 10-K reports to insider trading profitability. Using a sample of 102,060 insider transactions in the United States between 1994 and 2016, we empirically demonstrate that less readable 10-K reports increase profitability from insider trading. Consistent with the proprietary cost argument, we also document that readability impacts on insider trading profitability are more pronounced for research and development–intensive firms, for firms facing higher product market competition and trade secrecy, and for firms with lower levels of voluntary management disclosures. Overall, this study supports the proprietary cost and strategic information asymmetry channel of readability and suggests that less readable reports lead to the exploitation of information advantages by insiders. JEL Classification: D4, G14, G34, G40

Integration to Inclusion in Hong Kong: Not an Easy Progression

2021 ◽  
pp. 1-13
Author(s):  
Peter Westwood
Keyword(s):  
United States ◽  
Hong Kong ◽  
Inclusive Education ◽  
The United States ◽  
Academic Standards ◽  
Education Policies ◽  
Negative Attitudes ◽  
Large Class Size ◽  
Inclusive Schooling ◽  
Education In Hong Kong

Abstract This article describes the evolution of inclusive education in Hong Kong, moving from segregation via integration to inclusion. The outside influence of education policies and trends from Britain, Australia, and the United States are identified, and the current situation is described. In particular, obstacles that are encountered on the route to inclusion are compared with those found in other countries. These obstacles include large class size, teachers’ often negative attitudes, parents’ expectations, teachers’ lack of expertise for adapting the curriculum and for providing differentiated teaching, and ongoing conflicts between the notion of ‘inclusive schooling for all’ and the ‘academic standards agenda’.

Contemporary Practice of the United States Relating to International Law

1997 ◽  
Vol 91 (3) ◽  
pp. 493-517
Author(s):  
Marian Nash (Leich)
Keyword(s):  
United States ◽  
Hong Kong ◽  
Law Enforcement ◽  
International Law ◽  
The United States ◽  
People’S Republic Of China ◽  
People's Republic Of China ◽  
Republic Of China ◽  
The Government ◽  
Contemporary Practice

On March 3,1997, President William J. Clinton transmitted to the Senate for its advice and consent to ratification as a treaty the Agreement Between the Government of the United States of America and the Government of Hong Kong for the Surrender of Fugitive Offenders, signed at Hong Kong on December 20,1996. In his letter of transmittal, President Clinton pointed out that, upon its entry into force, the Agreement would “enhance cooperation between the law enforcement communities of the United States and Hong Kong, and … provide a framework and basic protections for extraditions after the reversion of Hong Kong to the sovereignty of the People’s Republic of China on July 1, 1997.” The President continued: Given the absence of an extradition treaty with the People’s Republic of China, this Treaty would provide the means to continue an extradition relationship with Hong Kong after reversion and avoid a gap in law enforcement. It will thereby make a significant contribution to international law enforcement efforts.The provisions of this Agreement follow generally the form and content of extradition treaties recently concluded by the United States. In addition, the Agreement contains several provisions specially designed in light of the particular status of Hong Kong. The Agreement’s basic protections for fugitives are also made expressly applicable to fugitives surrendered by the two parties before the new treaty enters into force.

scholarly journals Unknown Unknowns: Uncertainty About Risk and Stock Returns

2018 ◽  
Vol 53 (4) ◽  
pp. 1615-1651 ◽  
Author(s):  
Guido Baltussen ◽  
Sjoerd van Bekkum ◽  
Bart van der Grient
Keyword(s):  
United States ◽  
Stock Returns ◽  
Stock Prices ◽  
Stock Markets ◽  
The United States ◽  
Pricing Mechanism ◽  
European Stock Markets ◽  
Low Uncertainty ◽  
High Uncertainty

Stocks with high uncertainty about risk, as measured by the volatility of expected volatility (vol-of-vol), robustly underperform stocks with low uncertainty about risk by 8% per year. This vol-of-vol effect is distinct from (combinations of) at least 20 previously documented return predictors, survives many robustness checks, and holds in the United States and across European stock markets. We empirically explore the pricing mechanism behind the vol-of-vol effect. The evidence points toward preference-based explanations and away from alternative explanations. Collectively, our results show that uncertainty about risk is highly relevant for stock prices.

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