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- W3124587908 endingPage "342" @default.
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- W3124587908 abstract "ABSTRACT This study examines whether disclosures of insider equity purchases on Securities and Exchange Commission (SEC) Form 4 resolve uncertainty regarding the valuation implications of reported earnings. Defining information uncertainty as ambiguity about firm value arising from low earnings precision, I predict and find that insider purchase filings trigger more positive market reactions in firms with greater information uncertainty (lower quality accruals). After controlling for future earnings changes, I further find that market reactions to purchase filings are predictably associated with prior earnings changes. The strength of this effect is increasing in the magnitude of insider purchases, as well as the level of information uncertainty. Overall, these findings suggest that, in addition to signaling future earnings information, Form 4 purchase filings help investors learn about the valuation implications of past earnings signals. Data Availability: All data are available from public sources." @default.
- W3124587908 created "2021-02-01" @default.
- W3124587908 creator A5034446660 @default.
- W3124587908 date "2011-08-01" @default.
- W3124587908 modified "2023-09-29" @default.
- W3124587908 title "Disclosures of Insider Purchases and the Valuation Implications of Past Earnings Signals" @default.
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- W3124587908 doi "https://doi.org/10.2308/accr-10162" @default.
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