A Study on the Relationship of Insider Trading and Board Member Composition

• Main Authors: SHIH-YING, HUANG, 黃詩瑩
• Other Authors: YAN-QING, CHI
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/76307478109686903028

碩士 === 中國文化大學 === 會計研究所 === 91 === This study aims to examine the insiders’ trading activities prior to the announce-ment of unaudited earnings. The sample consists of electronic firms listed in the Taiwan Stock Exchange and in the R.O.C. Over-The-Counter Securities Exchange. It also ex-amines whether board composition affects the insiders’ trading behavior. The empirical results can be summarized as follows： 1.The insiders’trading activities prior to the announcement of unaudited earnings are speculation. 2.Electronic firms listed in the Taiwan Stock Exchange, the relationship of the per-centage of directors'' and supervisors'' shareholding and degree of insiders’ trading are significantly positively related. In addition, for electronic firms listed in the R.O.C. Over-The-Counter Securities Exchange, these variables are significantly related. 3.The relationship of directors’ and supervisors’ pledged share ratio, and the degree of insider trading are both positively and negatively related, but not significantly. 4.The relationship between the size of board of directors and degree of insider trad-ing are significantly negatively related. 5.Electronic firms listed in the Taiwan Stock Exchange, the relationship of propor-tion of the largest family members hold more board seats and degree of insider trading are negatively related at significant level. In addition, electronic firms listed in the R.O.C. For firms listed on the Over-The-Counter Securities Exchange, these variables are positively, but not significantly, related.