On January 4, 2024, Faculty of Finance at City University of Macau organized the tenth academic salon (2023-2024) at the Taipa campus. The seminar was hosted by Dr. Haoyang Xiong from Montana State University. Dr. Xiong delivered a lecture on his research paper titled "Off-the-job Managerial Indiscretion and Insider Trading". The paper explores the impact of personal off-the-job managerial indiscretions on corporate insiders’ trading behavior. Executives who are accused of personal misconduct earn significantly higher abnormal returns from their insider purchases and sales within a 15-day window surrounding each trade. These findings are supported by matched sample analyses. Further, corporate culture has less explanatory power than personal attributes. The study also demonstrates that the public disclosure/exposure of these indiscretions has a disciplinary effect, as insider trading profits significantly decline following the announcement of such misconduct, albeit temporarily. Effective corporate governance mechanisms significantly reduce the abnormal returns earned by executives involved in such indiscretions.
Dr. Xiong is currently an Assistant Professor of Finance at Montana State University. His research focuses on insider trading and financial regulation. He has published articles in journals such as the Journal of Corporate Finance, Journal of Empirical Finance, and Public Choice. The academic salon hosted by Dr. Xiong brought valuable academic exchange and discussion to the Faculty of Finance at the City University of Macau.
The Academic Salon organized by Faculty of Finance at City University of Macau serves as a platform for exchanging academic ideas and fostering academic awareness. With finance as the main focus, we invite senior scholars/experts from academia and the financial industry to engage in research discussions on cutting-edge topics and share industry development trends, aiming to provide a fresh academic experience and thinking model for CityU students and members of the Faculty. Through activities like the Academic Salon, we hope to offer graduate students a better academic platform, encouraging further exploration and research on academic issues.