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Tag: shareholders

A LONG-TERM STUDY OF DEFENDANT FIRMS IN SHAREHOLDER CLASS ACTION LAWSUITS

In the US, shareholders can form a class action to sue a company under S10b-5 of the Securities Exchange Act for allegedly releasing misleading information, or for failing to disclose material information. The substantial cost of litigation, and its associated impact on shareholder value, has prompted debate over whether to reform access to the shareholder

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CAN DISCRETION PREDICT DIRECTOR RETURNS?

Directors execute trades in their companies’ shares for a variety of reasons. Their actions may have information value for other investors seeking to mimic these strategies. This paper tests whether directors’ discretionary trading has a predictive value, and also provides a better understanding of the information flow in equity markets. Sean Hardy USYD, CIFR /

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OWNERSHIP CONCENTRATION, INDUSTRIAL COMPETITION AND INFORMATION ASYMMETRY

Managers and major shareholders typically have an information advantage over outside investors when trading a company’s shares. Numerous studies have been done into the relation between ownership concentration, industry competition and information asymmetry, but rarely using Australian data. The output of this study is particularly relevant for regulators, as it examines conditions that might limit

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