Insider Trading and the Problem of Corporate Agency
نویسندگان
چکیده
منابع مشابه
The Regulation of Insider Trading as an Agency Problem
It has been argued that insider trading can be a source of agency problems and, hence, should be prohibited. This paper attempts to assess whether, by prohibiting insider trading, regulation can reduce agency problems. First, it will be shown that regulation has been unable to prevent insider trading. Second, we will explain why the regulation of insider trading cannot be effective. Finally, we...
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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. ...
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This paper addresses the question of how the timing of corporate insider trading is related to the level of information asymmetry in a stock price. Our empirical analysis shows that, when buying their firm’s shares, corporate insiders are likely to exploit their informational advantage through trading at times of high information asymmetry, while their selling appears more cautious because of r...
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We investigate if prior professional legal education either restrains or increases the extent to which the insider trades of company executives and directors are informed. We show that lawyer-insiders earn significantly lower abnormal returns than non-lawyers when they purchase their own company’s shares. Purchases of own company stock by lawyer-insiders are associated with lower future earning...
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Article history: Received 3 April 2014 Accepted 13 November 2014 Available online 20 November 2014 This paper examines the effect of insider trading restrictions on corporate risk-taking. Using a cross-country sample of 38 countries over the 1990 to 2003 period, we find that corporate risk-taking is positively related to insider trading restrictions. This finding is robust to alternative regres...
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ژورنال
عنوان ژورنال: Journal of Law, Economics, and Organization
سال: 1997
ISSN: 8756-6222,1465-7341
DOI: 10.1093/oxfordjournals.jleo.a023385