Insider trading restrictions and corporate risk-taking ¬リニ
نویسنده
چکیده
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 regression specifications and sample periods, to the use of alternative measures of insider trading restrictions and risk-taking incentives, and to controls for possible endogeneity. Further investigation suggests that the relation between insider trading restrictions and corporate risk-taking is influenced by cross-sectional differences in stock market development and legal origin, and that the increase in risk-taking is beneficial to firms. In conclusion, this paper highlights the role of insider trading restrictions as an important determinant of corporate risk-taking. © 2014 Elsevier B.V. All rights reserved. JEL classification: G18 G32 G34
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