Insider Trading Problems Related to Japanese Seasoned Equity Offerings †
نویسندگان
چکیده
Insider trading problems relating to Japanese seasoned equity offerings (SEO) have attracted the attention of many investors. The purpose of this paper is to examine SEO insider problem and to provide suggestions to solve the problem. We have several findings. First, all four of the SEO insider firms experienced negative abnormal stock returns and high trading volume just two weeks before SEO announcement. Second, firms with murky dealings traded at approximately 9% lower prices than did firms without such dealings. Third, firms with murky dealings experienced increased short selling both immediately before and immediately after SEO announcement. Finally, murky dealings markedly reduced the probability of stabilization being conducted. JEL classification: G21; G24
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