Greed, Envy, and the Criminalization of Insider Trading

Insider Trading and Innovation

This paper assesses whether the enforcement of insider trading laws increases or decreases patent-based measures of technological innovation. Based on about 75,000 industry-countryyear observations across 94 economies from 1976 to 2006, we find evidence consistent with the view that enforcing insider trading laws spurs innovation—as measured by patent intensity, scope, impact, generality, and o...

Opportunistic insider trading☆

Article history: Received 22 June 2011 Accepted 23 July 2012 Available online 31 July 2012 This study proposes a simple framework to disentangle insiders' opportunistic trade from liquidity trade. An opportunistic trade occurswhen the probability of informed trading and the speed of convergence to market efficiency increase in a month of an insider transaction. Using Thailand Securities Exchang...

Insider Trading and Prediction Markets

Rules limiting insider trading may encourage investment, but they may also discourage exploration of new less-decentralized corporate information processes, such as prediction and decision markets. I review standard corporate information processes and insider trading rules, outline possible improvements that prediction markets might offer, and consider ways we might change insider trading rules...

Controlling the Agency Cost of Insider Trading

This study provides a unique use of abnormal profits from insider trading to measure a specific form of agency cost between outside shareholder and insiders—the agency cost of insider trading. Cross-sectional differences in the utilization of various bonding and monitoring mechanisms are examined to determine the relative effectiveness of alternative strategies in controlling such agency cost. ...

Prioritizing Enforcement in Insider Trading