Impact of Investor Meetings/Presentations on Share Prices, Insider Trading and Securities Regulation
نویسندگان
چکیده
The purpose of this article is to investigate whether the securities regulation put forward by the EU contributes to an efficient stock market. An event study of investor meetings/presentations held by listed Danish firms is conducted. The article finds significantly positive abnormal returns a few days around investor meetings. Share turnover reaches maximum one day after investor meetings. The variances of the abnormal returns increase substantially the closer we get to the holding of an investor meeting, indicating the presence of possible insider trading. The relevant securities regulation based on EU directives is critically discussed and thus compared with US regulation.
منابع مشابه
Essays in insider trading, informational efficiency, and asset pricing
In this dissertation, I consider a range of topics related to the role played by information in modern asset pricing theory. The primary research focus is twofold. First, I synthesize existing research in insider trading and seek to stimulate an expansion of the literature at the intersection of work in the insider trading and financial economics areas. Second, I present the case for using Pete...
متن کاملShould Recover What in a Securities Fraud Class Action ?
In this article, I argue that securities fraud class actions (SFCAs) should not be treated as class actions but rather should be treated as derivative actions. In addition, I argue that such actions should be dismissed unless it appears that insiders (including the company itself) have enjoyed gains from trading during the fraud period. Both of these conclusions are based on the fundamental arg...
متن کاملEthical norms of CFO insider trading
Insider trading encompasses the buying or selling of stocks based on non-public information about the securities in question. Engaging in insider trading is particularly unethical for a Chief Financial Officer (CFO) who holds a fiduciary responsibility to shareholders and also typically is ethically obligated by his or her professional responsibilities. Although the Securities and Exchange Comm...
متن کاملIndian Capital Market Recent Developments and Policy Issues
There are 22 stock exchanges in India, the first being the Bombay Stock Exchange (BSE), which began formal trading in 1875, making it one of the oldest in Asia. Over the last few years, there has been a rapid change in the Indian securities market, especially in the secondary market. Advanced technology and online-based transactions have modernized the stock exchanges. In terms of the number of...
متن کاملInsider Trading: Regulation, Deregulation, and Taxation
I consider in this paper the impact of insider trading regulation (ITR) on a securities markets and on social welfare, and suggest that society would be better off if ITR were eliminated. In addition, acknowledging that such an abrupt change in policy is not likely to be made, at least in the short run, I propose two alternative policies, both consisting of allowing insider trading and imposing...
متن کامل