英文摘要 |
This study mainly examines the relationship between corporate governance and insider trading profit. The degree of corporate governance can be considered to see whether acompany is rigorously managed and adhering to ethical business practices. According to the corporate governance literature, there is asignificant correlation between the degree of corporate governance and corporate financial fraud or illegal activities. Whether good corporate governance can inhibit profits from insider trading is the topic this article intends to explore. We chose Taiwan's listed and OTC companies then divided their insider trading transaction into purchasing and selling groups. The empirical results of this article find that after insiders buy stocks, the company will have positive cumulative abnormal excess returns in the future; after insiders sell stocks, the company will have negative cumulative abnormal excess returns in the future. Among companies in the insider trading selling group, companies with poor rankings in governance evaluation indicators will have insiders selling stocks early to avoid future losses; companies in the insider trading buying group do not have this phenomenon. Therefore, the empirical results of this study confirm that the ''Corporate Governance Evaluation Index Ranking'' does have reference value for external investors to understand insider trading behavior. |