Daily Archives: November 26, 2019, 1:50 pm

The Signal Quality of Earnings Announcements: Evidence from an Informed Trading Cartel

This study examines the revealed preference of informed traders to infer the extent to which earnings announcements are informative of subsequent stock price responses. From 2011 to 2015, a cartel of sophisticated traders illegally obtained early access to firm press releases prior to publication and traded over 1,000 earnings announcements. I study their constrained profit maximization: which earnings announcements they…

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FCPA “Tips” Continue To Be A Minor Component Of The SEC’s Whistleblower Program – FCPA Professor

Recently, the SEC released its annual report for FY2019 and, like the prior eight years, FCPA “tips” continue to be a minor component of the SEC’s whistleblower program. Specifically, according to the SEC’s report, of the 5,200 whistleblower tips received by the SEC in FY2019, 200 (3.8%) related to the FCPA. This percentage of FCPA “tips” vs. overall tips is…

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