Does Corporate Governance Quality Influence Insider Trading around Private Meetings between Managers and Investors?

SYNOPSIS We examine the effectiveness of corporate governance in influencing insider trading around private in-house meetings (hereafter “private meetings”) between management and investors China. Consistent with better curbing (1) disclosure nonpublic price-sensitive information (2) trading, we find that quality is associated reduced frequency, value, profitability meetings. Firms appear to exchange less outsider meetings, which limits opportunity make profitable trades. Our results are economically significant robust using instrumental variable propensity score matching approaches address endogeneity. argue improving may be a partial substitute for costly government regulation designed curb JEL Classifications: G34; G14; G18.