Insider trading with uncertain date of publication

This paper focuses on insider trading and its effect on market liquidity and information efficiency. The insider follows an intertemporal trading strategy. We start with the model of Kyle. This model is extended to the case that the date at which insider information becomes public is uncertain. The analysis yields plausible results: When the probability of an earlier publication date increases, the insider trades more and the price reflects more information. Interestingly enough, the market liquidity decreases.