To provide further evidence on the merits of securities class actions, we examine insider transactions immediately before and during the class period, using a larger and newer data set. We show that insiders reduce their stock sales by an abnormal amount immediately before the class period....

Purpose – The purpose of this research is to provide further evidence on the association between the IPO signaling mechanisms (i.e. retained ownership, auditor choice, and earnings forecast) by using a less restrictive sample and by performing additional empirical tests....