SHIN, JHINYOUNG; SINGH, RAJDEEP - In: International Review of Finance 10 (2010) 3, pp. 313-337
In this paper, we model a corporate insider's motivation of truthful pre-trade disclosure of her private payoff-relevant information. In a model in which disclosure has no efficiency gains like reduced cost of capital, no legal implications, and no signaling motivations, we show that a corporate...