Management trading in Chinese entrepreneurial firms on the ChiNext

Hu, May, Jun, Xiao and Yang, Jingjing 2015, Management trading in Chinese entrepreneurial firms on the ChiNext, Emerging markets finance and trade, vol. 51, pp. S33-S45, doi: 10.1080/1540496X.2015.1026739.

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Title Management trading in Chinese entrepreneurial firms on the ChiNext
Author(s) Hu, MayORCID iD for Hu, May
Jun, Xiao
Yang, Jingjing
Journal name Emerging markets finance and trade
Volume number 51
Start page S33
End page S45
Total pages 14
Publisher Routledge
Place of publication Oxford, Eng.
Publication date 2015-09-04
ISSN 1540-496X
Keyword(s) China insider
entrepreneurial firms
management trading
Summary We examine management trading in Chinese entrepreneurial firms on the ChiNext. We find that management shareholdings are considerably high, and executives tend to sell their shares after the IPOs on the ChiNext. The propensity for executives to sell shares is negatively correlated with the firms corporate governance and current operating cash flows, but the amount they sell is only positively correlated with the level of management holdings. Both the management selling decision and percentage of selling do not associate with firms earnings and sales growth. This suggests that managers are profit makers rather than informed traders in their selling activities on the ChiNext. We also find that the market reaction to management selling is substantially negative, which implies a herding effect of investors following executives to sell shares.
Language eng
DOI 10.1080/1540496X.2015.1026739
Field of Research 150201 Finance
Socio Economic Objective 900101 Finance Services
HERDC Research category C1 Refereed article in a scholarly journal
ERA Research output type C Journal article
Copyright notice ©2015, Taylor & Francis
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Document type: Journal Article
Collection: Department of Finance
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