Managerial information leakage and its impact on shareholder wealth

Managerial information leakage and its impact on shareholder wealth

This case study consists of nine scenarios where information (or “news”) disseminates to the public. On the basis of this information, you are to determine whether this presents a good buy or sell opportunity. Each of these trading scenarios deal with a managerial decision (such as to issue dividends to investors), a political development, a financial accounting event, or some other corporate event that can impact shareholders. Each of these scenarios requires analysis of the information (keeping in mind information is always incomplete or incongruous in practice) in order to make a decision. The decision-makers in this case can consist of small individual investors, hedge funds, or other institutional investors. From a managerial finance perspective, you will also see the importance of managerial information disclosures to the public and how it can impact shareholders.

These are some of the key concepts which your research essay can address (you are not required to have all of these and you can even have additional ones which you find interesting):
(a) Managerial information leakage and its impact on shareholder wealth (i.e., stock prices);
(b) The Efficient Market Hypothesis (EMH);
(c) Market microstructure characteristics (i.e., when do markets open/close, trade volume around
major events, etc.);
(d) The concept of diversification in protecting oneself in the event of bad news;
(e) Insider trading and trading on private information;
(f) Differences between American and Chinese stock markets.

Additional Resources to Help You I strongly encourage you to use Google Scholar to find scholarly articles on concepts such as insider trading or the efficient market hypothesis. Some such articles are as follows (copy & paste the links into your browser):
* http://www.bu.edu/econ/files/2011/01/Malkiel.pdf
Here are some good practitioner articles to help you get started (from Investopedia) and which also contain
information on the trading philosophies of various investors (like George Soros):
* https://www.investopedia.com/articles/markets-economy/092216/why-insider-trading-bad-financial-markets.asp
* https://www.investopedia.com/articles/03/100803.asp
* https://www.investopedia.com/news/active-vs-passive-investing/
* https://www.investopedia.com/terms/g/soros.asp
* https://www.investopedia.com/articles/financial-theory/09/how-soros-does-it.asp
* https://www.investopedia.com/articles/active-trading/102914/technical-analysis-strategies-beginners.asp

find the cost of your paper

The Impact of Happier Employees

The Impact of Happier Employees Envision yourself as the middle manager in your organization. Create a PowerPoint presentation for upper level leadership in an effort to obtain a pledge of….

Pharmacotherapy for Cardiovascular disorders

Pharmacotherapy for Cardiovascular disorders Despite the high mortality rates associated with cardiovascular disorders, improved treatment options do exist that can help address those risk factors that afflict the majority of….

Leadership Studies

Leadership Studies The focus of the course is on developing a management team that makes a greater contribution to the organization than the sum of the individual managers. Because this….