Earnings announcements are treated very differently in the media than are insider stock trades, a new academic study observes, as it measures the immediate impact of media reporting on stock prices to discover odd noncorrelated issues. The study, aptly titled “The Role of the Media in Disseminating Insider Trading Activity,” noted that inside trading information is given scant attention despite its impact on stock price performance. The media instead focuses almost exclusively on corporate earnings, which firms can manipulate in terms of timing of informational release. “Trading on insider information is profitable” “Trading on insider information is profitable,” the report…
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