Download or read book Institutional Ownership, Differential Predisclosure Precision and Trading Volume at Announcement Dates written by William M. Cready and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the relation between ownership structure, as revealed by the percentage of outstanding shares held by institutional investors, and trading volume at earnings announcement dates. We find that volume response as a function of institutional ownership is a quadratic curve that reaches a maximum at around 50% institutional ownership. We show that this relation is consistent with Kim and Verrecchia's (1991) proposition that trading volume response to public announcements increases with the level of cross-investor variation in precision of private predisclosure information.