ACCTG 502 | Session 5 | The Governance Effect of the Media's News Dissemination Role

The Governance Effect of the Media's News Dissemination Role: Evidence from Insider Trading - 2015 LILI DAI, JERRY T. PARWADA, AND BOHUI ZHANG Introduction The study explores how the media's role in spreading regulatory news about insider trading influences the profitability of insiders' future transactions. In simple terms, it examines whether media coverage of required filings, without providing new information, can regulate insider behavior. The authors contend that media dissemination alone lowers abnormal returns from insider trades by attracting public attention and thereby limiting opportunistic actions.