The remainder of this paper is organized as follows. In section 2, we describe
how we measure earnings quality. In section 3, we describe the sample
data employed and provide descriptive statistics. Our empirical analyses of
the cost of capital effects of asymmetric information risk and its association
with insider trading are contained in section 4. We conclude in section 5
with a summary of our results and a discussion of how they relate to extant
theory.