Political Connections and Insider Trading

Political Connections and the Informativeness of Insider Trades

This paper examines the relation between political connections and informed trading by corporate insiders in the context of government intervention during the Financial Crisis. Consistent with politically connected insiders extracting rents from shareholders, we find strong evidence of a relation between political connections and informed trading by corporate insiders. We find that the relation...

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...

Prioritizing Enforcement in Insider Trading