Insider Trading Regulation and the Production of Information: Theory and Evidence
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چکیده
منابع مشابه
Competitive Threats, Information Asymmetry, and Insider Trading
This paper provides evidence that intensified product market competition increases information asymmetry between corporate insiders and investors. I use volume and gains from insider trading as proxies for information asymmetry. I show that when a firm faces competitive threats insiders purchase and sell more stocks and their trading better predicts future stock returns and long-term profitabil...
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This paper examines the effect of introducing insider tratlin~; restrictions on the behaviour of the Amsterdam Stock Exchange. From 198'7 on, insiders are no longer allowed to trade two months before an annual earnings announcement. The results indicate that stocks became less liquid (when liquidity is measured by trading volume) when insiders were not allowed to trade. We also find some eviden...
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Empirical evidence suggests that information leakage in capital markets is common. We present a trading model to study the incentives of an informed trader (e.g., a well informed insider) to voluntarily leak information about an asset’s value to another independent trader. Our model shows that, while leaking information dissipates the insider’s information advantage about the asset’s value, it ...
متن کاملWhen is public enforcement of insider trading regulations effective?
In this paper we investigate when public enforcement of insider trading regulations reduces the amount of insider trading. We model a game between a potentially self-interested regulator enforcing insider trading laws and a trader who may be trading on inside information. We show that equilibrium strategies exist where despite active enforcement all inside information is used. Furthermore, we f...
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This study documents that there is significant information content in stock trading by registered corporate insiders for the bond market. We report significant positive price reactions for convertible and straight bonds in response to the Wall Street Journal's Insider Trading Spotlight publication of insider buy transactions and significant negative reactions for insider sell transactions. The ...
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تاریخ انتشار 2016