The dynamics of informed trading around corporate bankruptcies
We investigate the dynamics of informed trading both before and after corporate bankruptcy announcements using high frequency data. Our findings reveal that pre-announcement informed selling attenuates subsequent announcement returns, with this effect being weaker for firms receiving extensive pre-a...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Published: |
Elsevier
2024
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| Online Access: | http://hdl.handle.net/20.500.11937/94811 |
| _version_ | 1848765930179395584 |
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| author | Viet Anh, Dang Dinh Trung, Nguyen Pham, Thu Phuong Ralf, Zurbruegg |
| author_facet | Viet Anh, Dang Dinh Trung, Nguyen Pham, Thu Phuong Ralf, Zurbruegg |
| author_sort | Viet Anh, Dang |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | We investigate the dynamics of informed trading both before and after corporate bankruptcy announcements using high frequency data. Our findings reveal that pre-announcement informed selling attenuates subsequent announcement returns, with this effect being weaker for firms receiving extensive pre-announcement media coverage or adverse news sentiment. We also find that post-announcement informed trading can serve as a predictor of subsequent bankruptcy outcomes. Overall, results are consistent with there being material information leakage, warranting policy efforts to better safeguard less informed investors. |
| first_indexed | 2025-11-14T11:43:04Z |
| format | Journal Article |
| id | curtin-20.500.11937-94811 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T11:43:04Z |
| publishDate | 2024 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-948112024-09-26T02:50:13Z The dynamics of informed trading around corporate bankruptcies Viet Anh, Dang Dinh Trung, Nguyen Pham, Thu Phuong Ralf, Zurbruegg We investigate the dynamics of informed trading both before and after corporate bankruptcy announcements using high frequency data. Our findings reveal that pre-announcement informed selling attenuates subsequent announcement returns, with this effect being weaker for firms receiving extensive pre-announcement media coverage or adverse news sentiment. We also find that post-announcement informed trading can serve as a predictor of subsequent bankruptcy outcomes. Overall, results are consistent with there being material information leakage, warranting policy efforts to better safeguard less informed investors. 2024 Journal Article http://hdl.handle.net/20.500.11937/94811 10.1016/j.frl.2024.105385 http://creativecommons.org/licenses/by/4.0/ Elsevier fulltext |
| spellingShingle | Viet Anh, Dang Dinh Trung, Nguyen Pham, Thu Phuong Ralf, Zurbruegg The dynamics of informed trading around corporate bankruptcies |
| title | The dynamics of informed trading around corporate bankruptcies |
| title_full | The dynamics of informed trading around corporate bankruptcies |
| title_fullStr | The dynamics of informed trading around corporate bankruptcies |
| title_full_unstemmed | The dynamics of informed trading around corporate bankruptcies |
| title_short | The dynamics of informed trading around corporate bankruptcies |
| title_sort | dynamics of informed trading around corporate bankruptcies |
| url | http://hdl.handle.net/20.500.11937/94811 |