International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

A Review of Insider Trading and Management Earnings Forecasts
Zhang Jing

This paper reviews the literature about the management earnings forecasts (MEFs) under insider trading motivations. This review includes three parts: the motivations of earnings forecasts, the strategically choice of earnings forecasts attributes based on insider trading and the abnormal return of insider trading following selective choice of earnings forecasts attributes. This paper contributes to the literature about insider trading and MEFs disclosure. This study will help to improve the disclosure quality of management earnings forecasts, to enhance capital market information disclosure system and to protect the interests of minor shareholders.

Full Text: PDF