Abstract
It is relatively new research field in finance to study corporation financing decisions from the point of market microstructure. This paper reviews the literature about the impact of informed trade on corporate finance decisions. The literature shows that informed trade can affect the company's financing structure. The financing structure can be classified into two kinds: one is internal financing and the other is external financing. When considering internal financing from the perspective of dividend policy, informed trade will affect the signaling role of dividend policy while considering the equity financing from the perspective of the cost, informed trade is likely to have an effect on the cost of equity financing. Since there is not much literature about the impact of informed trade, more research about it needs to be done.
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