Pre-announcement and event-period private information

Oliver Kim, Robert E. Verrecchia

Journal of Accounting and Economics · 1997 · 597 citations · 16 references

DOIFull text

Open access

Concepts

Abstract

Pre-announcement information is private information gathered in anticipation of a public disclosure. Event-period information is private information useful in conjunction with the announcement itself. Typically rational models of trade are based exclusively on one type of information. Such models are less descriptive of real market settings and misspecified empirically. Therefore, we introduce a model of rational trade with both features and discuss its implications.

References

16