Financial reporting opacity and informed trading by international institutional investors Public Deposited

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  • March 21, 2019
  • Maffett, Mark G.
    • Affiliation: Kenan-Flagler Business School
  • Using cross-country data on trading by international mutual funds, I find that firms with more opaque information environments, as captured by firm- and country-level measures of the availability of financial reporting information, experience more privately-informed trading by institutional investors. The association between firm-level opacity and informed trading is most pronounced where country-level disclosure infrastructures are less developed and for those investors for whom the incentives and opportunities to acquire private information are greatest. A difference-in-differences analysis of returns earned by institutions across opaque and transparent firms suggests these results are economically significant.
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  • ... in partial fulfillment of the requirements for the degree of Doctor of Philosophy in the Kenan-Flagler School of Business.
  • Lang, Mark

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