Articoli di riviste sul tema "Insider trading in securities"
Segui questo link per vedere altri tipi di pubblicazioni sul tema: Insider trading in securities.
Cita una fonte nei formati APA, MLA, Chicago, Harvard e in molti altri stili
Vedi i top-50 articoli di riviste per l'attività di ricerca sul tema "Insider trading in securities".
Accanto a ogni fonte nell'elenco di riferimenti c'è un pulsante "Aggiungi alla bibliografia". Premilo e genereremo automaticamente la citazione bibliografica dell'opera scelta nello stile citazionale di cui hai bisogno: APA, MLA, Harvard, Chicago, Vancouver ecc.
Puoi anche scaricare il testo completo della pubblicazione scientifica nel formato .pdf e leggere online l'abstract (il sommario) dell'opera se è presente nei metadati.
Vedi gli articoli di riviste di molte aree scientifiche e compila una bibliografia corretta.
1
KEIBER, KARL LUDWIG. "INSIDER TRADING RULES AND PRICE FORMATION IN SECURITIES MARKETS: AN ENTROPY ANALYSIS OF STRATEGIC TRADING". International Journal of Theoretical and Applied Finance 09, n. 08 (dicembre 2006): 1215–43. http://dx.doi.org/10.1142/s0219024906004013.
Testo completoAbstract (sommario):
This paper addresses the issue of how insider trading rules affect price formation in securities markets and suggests the application of information theory to market microstructure theory. We analyze a variant of the setting in [20] by simply introducing a more general criterion for informational efficiency borrowed from information theory — namely maximum information transmission. The analysis shows that both the insider's optimal trading strategy and the market price of the risky security depend on the insider trading restriction. Insider trading restrictions are reported to be detrimental to the liquidity of the securities market. We find that a unique insider trading rule exists which implements semi-strong form informational efficiency of the securities market. Alternative restrictions on insider trading give rise to either underreaction or overreaction in securities prices. Too strict insider trading rules are shown to account for excess volatility in securities prices. Contrary to common notion, the uninformed investors are shown to be hurt by too restrictive insider trading rules. We conclude that loose insider trading rules are preferred by the group of investors as a whole.
2
Davis, Frederick, Behzad Taghipour e Thomas J. Walker. "Insider trading surrounding securities class action litigation and settlement announcements". Managerial Finance 43, n. 1 (9 gennaio 2017): 124–40. http://dx.doi.org/10.1108/mf-05-2016-0129.
Testo completoAbstract (sommario):
Purpose The purpose of this paper is to investigate the trading patterns of corporate insiders, both managing and non-managing, around the announcement dates of securities class action lawsuits and related legal settlements. Design/methodology/approach The authors use market model event study methodology to examine the impact of class action litigation and settlement announcements on the stock prices of sued firms. The authors then determine the extent of abnormal insider trading surrounding such announcements by comparing insider trading activity (volume and transaction counts) to prior insider trading in the same firm, and to a matched sample of firms not experiencing such litigation announcements. A multivariate framework is utilized to provide further insight into the determinants of such abnormal insider trading. Findings The authors establish that class action litigation and settlement announcements have a significant impact on the stock prices of sued firms, and that foreknowledge of these events appears to be used by insiders to earn abnormal profits. Moreover, results indicate that managing insiders exhibit higher opportunistic abnormal trading activity than non-managing insiders. Multivariate analysis shows that size, prior firm returns, and the implementation of the Sarbanes-Oxley Act are important determinants of such insider trading. Originality/value This appears to be the first paper to analyze insider trading surrounding class action settlement announcements, and raises concerns about the ethical conduct of certain insider groups while highlighting the importance of access to private information, even amongst insiders themselves.
3
Huang, Han-Ching, e Jung-Tzu Chang. "The effect of enforcement intensity on illegal insider trading volume: the case of Taiwan". Investment Management and Financial Innovations 13, n. 2 (4 luglio 2016): 141–48. http://dx.doi.org/10.21511/imfi.13(2-1).2016.02.
Testo completoAbstract (sommario):
In this paper, the authors examine the illegal insider trading volume and cumulative abnormal return by the relative variables of the amendment, the change of the securities price, the number of defendants, the penalty and the fine for insider who committed a crime, and the quality of concealed important information. Illegal insider trading is prohibited by the article 157-1 of Securities and Exchange Act in Taiwan. It has been amended three times to provide a sound and rigorous law and completely protect investors. The authors examine the illegal insider trading volume after the amendment to explore whether the Securities and Exchange Act is efficient enough to lower illegal insider trading. The authors find that the change of the securities price and the quality of concealed important information are the critical factors which affect the illegal insider trading volume and cumulative abnormal returns. Nevertheless, the relative variables of the amendment do not show significant effects
4
Figueroa, Dante. "Insider Trading and Other Securities Frauds in the United States: Lessons for Chile". Michigan Business & Entrepreneurial Law Review, n. 3.2 (2014): 165. http://dx.doi.org/10.36639/mbelr.3.2.insider.
Testo completoAbstract (sommario):
This Article is a comparative analysis of insider trading law in the United States and Chile. The study summarily reviews the historical, political, and legal foundations of insider trading regulation in both jurisdictions, identifying areas of convergence, as well as areas in which the Chilean securities market could benefit vis- ` a-vis the more advanced experience of the considerably larger American securities market. The Article also highlights the axiological closeness between both jurisdictions concerning the protection of inside corporate information and the fiduciary role of those who intervene in securities markets in their various capacities (as investors, shareholders, corporate officers, consultants, advisors, or as other intermediary roles). The Article concludes by identifying a series of reforms that might potentially benefit the Chilean legal system as it works towards its stated purpose of protecting and promoting transparency in its national securities market.
5
Singh, Nituja, e Rahul Kumar. "MS. SHIVANI GUPTA & ORS. v. SEBI Civil Appeal No.7054/ 7590 of 2021 Date of Judgment: 19/04/22". DME Journal of Law 4, n. 01 (30 giugno 2023): 94–97. http://dx.doi.org/10.53361/dmejl.v4i01.12.
Testo completoAbstract (sommario):
This an appeal decided by a Bench of Hon’ble JJ. Vineet Saran & Aniruddha Bose at Supreme Court of India against a judgement and order of Securities Appellate Tribunal (hereinafter “SAT”].This case relates to insider trading of securities in a matter of renowned body corporate PC jewellers Ltd. The matter of Insider trading in securities is so sensitive and serious issue in corporate affairs that it carries criminal liability under Companies Act, 20131 as well as Securities Exchange Board Act, 1992. Actually the legislative objectives behind restricting, prohibiting and regulating ‘insider trading’ is that the public money invested in the securities of public limited companies may not be put at risk by the promoters and management of Companies. The simple idea of securities insider trading is that people engaged with the management of the companies’ affairs may not be allowed to manipulate the selling-purchasing of different types of shares, stocks or debenture securities by causing artificial prices’ ups and down in the security market.
6
Hariono, Wisnu Satrio. "PERLINDUNGAN HUKUM BAGI INVESTOR TERHADAP KEJAHATAN INSIDER TRADING DALAM PASAR MODAL INDONESIA". JURNAL MEDIA HUKUM DAN PERADILAN 4, n. 2 (30 ottobre 2018): 199–219. http://dx.doi.org/10.29062/jmhp.v4i2.13.
Testo completoAbstract (sommario):
Insider Trading or insider trading is a form of banned trading in securities transactions in the capital market. The practice of insider trading is one form of violation of the principle of openness which is the soul of the capital market industry. This research is motivated by the number of insider trading practices in securities transactions. The main problem to be answered through this research is to know the extent of Capital Market Law in handling insider trading practices in Indonesia capital market. This research uses normative juridical approach and comparison of laws. In this research can be found the existence of legal efforts that can be done by investors who are harmed by the crime of insider trading by filing a lawsuit Unlawful Act, as a form of legal protection for investors.
7
Chen, Junzhuo. "Research on Insider Trading and Legal Regulation Issues in China’s Securities Market". Highlights in Business, Economics and Management 21 (12 dicembre 2023): 820–25. http://dx.doi.org/10.54097/hbem.v21i.14775.
Testo completoAbstract (sommario):
The purpose of this paper is to conduct an in-depth study on insider trading in China’s securities market and its legal regulation, and to propose strategies and recommendations for improving and enhancing the legal framework. Firstly, the paper provides an overview of the definition, harms, and elements of insider trading. Then, it analyzes the historical development and current status of the legal regulation of insider trading in China’s securities market, and identifies the existing problems and challenges. Finally, it presents measures for improving and enhancing the legal regulation of insider trading, including drawing on domestic and international experiences, strengthening the functions and capabilities of regulatory agencies, improving monitoring and detection mechanisms, and enhancing enforcement effectiveness and penalties. By implementing these comprehensive measures, the paper aims to further enhance the effectiveness of combating insider trading and uphold fairness and healthy development in the securities market.
8
Esqueda, Omar, Thanh Ngo e Daphne Wang. "The information content of managerial insider trading: evidence from analyst forecasts". Asian Review of Accounting 29, n. 3 (29 giugno 2021): 332–61. http://dx.doi.org/10.1108/ara-04-2020-0062.
Testo completoAbstract (sommario):
PurposeThis paper examines the effect of managerial insider trading on analyst forecast accuracy, dispersion and bias. Specifically, the authors test whether insider-trading information is positively associated with the precision of earnings forecasts. In addition, this relationship between Regulation Fair Disclosure (FD) and the Galleon insider trading case is examined.Design/methodology/approachPooled ordinary least squares (Pooled OLS) rregressions with year-fixed effects, firm-fixed effects, and firm-level clustered standard errors are used. Our proxies for forecast precision are regressed on alternative measures of insider trading activities and a vector of control variables.FindingsInsider-trading information is positively associated with the precision of earnings forecasts. Analysts provide better forecast accuracy, less forecast dispersion and lower forecast bias among firms with insider trading in the six months leading to the forecast issues. In addition, bullish (bearish) insider trades are associated with increased (decreased) forecast bias. Insider trading information complements analysts' independent opinion and increases the precision of their forecast.Practical implicationsRegulators may pursue rules that promote the rapid disclosure of managerial insider trades, particularly given the increasing availability of Internet tools. Securities regulators may attempt to increase transparency and enhance the reporting procedures of corporate insiders, for example, using Internet sources with direct release to the public to ensure more timely information dissemination.Originality/valueThe authors document a positive association between earnings forecast precision and managerial insider trading up to six months prior to the forecast issue. This relationship is stronger after the Securities and Exchange Commission (SEC) prohibited the selective disclosure of material nonpublic information through Regulation FD. In addition, the association between insider trading and forecast accuracy has weakened after the Galleon insider trading case.
9
Nathan, Daniel A., e Tiffany Rowe. "SEC charges broker-dealer for failure to protect against insider trading by employees". Journal of Investment Compliance 16, n. 1 (5 maggio 2015): 59–62. http://dx.doi.org/10.1108/joic-01-2015-0004.
Testo completoAbstract (sommario):
Purpose – To alert broker-dealers to Securities and Exchange Commission charges brought against a broker-dealer for ineffective controls over employee use of confidential information and to provide guidance regarding development and implementation of controls to protect against improper use of material non-public information by employees. Design/methodology/approach – Reviews Securities and Exchange Commission settlement order with broker-dealer for violations of securities laws for failure to adequately prevent insider trading by employees and provides guidance for implementing control to prevent insider trading. Findings – The Securities and Exchange Commission’s charges are the first to be brought against a broker-dealer for failure to adequately protect against insider trading. A broker used a customer’s confidential information regarding an impending acquisition by a private equity firm to purchase stock in the target company. The broker-dealer settled charges of violations of the federal securities laws for failing to adequately establish, maintain, and enforce policies and procedures to protect against insider trading by employees with access to confidential client information. Originality/value – Practical guidance regarding internal controls at broker-dealers from experienced securities litigation and regulation lawyers.
10
Chen, Laiyao. "Risk and Legal Regulation of Algorithm Application in Insider Trading Supervision". Technium Social Sciences Journal 43 (9 maggio 2023): 274–87. http://dx.doi.org/10.47577/tssj.v43i1.8767.
Testo completoAbstract (sommario):
Insider trading is a kind of information manipulation behavior in the securities market. The insider trading has brought great damage to the securities market in recent years, so securities regulatory authorities have begun to crack down on this kind of illegal behavior. With the application of algorithms in the field of supervision, regulators can accurately identify insider trading behaviors through big data analysis and other technologies, with which the efficiency of supervision was greatly improved. However, the application of algorithms in the supervision of insider trading is prone to cause various legal risks, such as the inaccurate transformation between algorithms and regulatory regulations, the imperfection of algorithms, the infringement of private data rights, etc. The legitimate rights of the regulated objects might be endangered by above risks. Therefore, it’s necessary to establish risk prevention and legal regulation to cope with the algorithms in the filed of insider trading supervision from three aspects of rule transformation, technical supervision and data security. In this way, the property rights, data rights, privacy rights of financial investors, listed companies and other stakeholders are protected.
11
Gea, Mansix Agusmanto, e Marihot Janpieter Hutajulu. "Insider Trading Case Settlement: Studies in Indonesia and The United States". Wacana Hukum 28, n. 1 (28 febbraio 2022): 18–22. http://dx.doi.org/10.33061/1.wh.2022.28.1.6781.
Testo completoAbstract (sommario):
Insider trading is a term that refers to the practice in which corporate insiders conduct securities transactions (trading) using their exclusive information that is not yet available to the public or investors. Indonesia and the United States are 2 (two) countries that prohibit insider trading in the capital market. Through this article, the author wants to analyze the similarities and differences the regulation of insider trading in Indonesia and the United States, and explain the legal process for the settlement of Insider Trading cases in Indonesia and the United States. This research is a normative research, using the laws and regulations on the capital market originating from 2 (two) countries, there are the laws and regulations on the capital market of Indonesia and the United States. The analysis of this paper concludes that Indonesia and the United States prohibit the practice of insider trading in the capital market.
12
Gea, Mansix Agusmanto, e Marihot Janpieter Hutajulu. "Insider Trading Case Settlement: Studies in Indonesia and The United States". Wacana Hukum 28, n. 2 (28 febbraio 2022): 18–22. http://dx.doi.org/10.33061/wh.v28i1.6781.
Testo completoAbstract (sommario):
Insider trading is a term that refers to the practice in which corporate insiders conduct securities transactions (trading) using their exclusive information that is not yet available to the public or investors. Indonesia and the United States are 2 (two) countries that prohibit insider trading in the capital market. Through this article, the author wants to analyze the similarities and differences the regulation of insider trading in Indonesia and the United States, and explain the legal process for the settlement of Insider Trading cases in Indonesia and the United States. This research is a normative research, using the laws and regulations on the capital market originating from 2 (two) countries, there are the laws and regulations on the capital market of Indonesia and the United States. The analysis of this paper concludes that Indonesia and the United States prohibit the practice of insider trading in the capital market.
13
Li, Guofeng, Zuojuan Li, Zheji Wang e Ke Zhang. "Identification of Insider Trading in the Securities Market Based on Multi-task Deep Neural Network". Computational Intelligence and Neuroscience 2022 (22 aprile 2022): 1–9. http://dx.doi.org/10.1155/2022/4874516.
Testo completoAbstract (sommario):
Illegal insider trading identification is of great significance to the healthy development of the securities market. However, with the development of information technology, problems such as multidata sources and noise bring challenges to the insider trading identification work. Moreover, most of the current research on insider trading identification is based on single-task learning, which treats enterprises in different industries as a whole. This may ignore the differences between insider trading identification in different industries. In this article, we collect indicators from multiple sources to help regulators identify insider trading and then use information gain and correlation analysis to screen the indicators. Finally, we propose a multitask deep neural network with insider trading identification in different industries as different subtasks. The proposed model takes into account the correlations and differences between different tasks. Results of experiments show that compared with logistic, support vector machine, deep neural network, random forest, and extreme gradient boosting model, the proposed model can identify insider trading of enterprises in different industries more accurately and efficiently. This article provides new ideas for market regulators to maintain the order of the securities market through intelligent means.
14
White, Roger M. "Insider Trading: What Really Protects U.S. Investors?" Journal of Financial and Quantitative Analysis 55, n. 4 (16 aprile 2019): 1305–32. http://dx.doi.org/10.1017/s0022109019000292.
Testo completoAbstract (sommario):
I examine the ability of the U.S. investor protection regime to limit insider trading returns, absent Section 16(b) of the Securities Exchange Act of 1934 (the short-swing rule). I find that in this setting, U.S. insiders execute short-swing trades that i) beat the market by approximately 15 basis points per day and ii) systematically divest ahead of disappointing earnings announcements. These results indicate that the bright-line rule restricting short-horizon round-trip insider trading plays a substantial role in protecting outside investors from privately informed insiders in the United States.
15
Esen, M. Fevzi. "A Robust Multivariate Outlier Detection Method for Detection of Securities Fraud". International Journal of Business Analytics 7, n. 3 (luglio 2020): 12–29. http://dx.doi.org/10.4018/ijban.2020070102.
Testo completoAbstract (sommario):
Insider trading is one the most common deceptive trading practice in securities markets. Data mining appears as an effective approach to tackle the problems in fraud detection with high accuracy. In this study, the authors aim to detect outlying insider transactions depending on the variables affecting insider trading profitability. 1,241,603 sales and purchases of insiders, which range from 2010 to 2017, are analyzed by using classical and robust outlier detection methods. They computed robust distance scores based on minimum volume ellipsoid, Stahel-Donoho, and fast minimum covariance determinant estimators. To investigate the outlying observations that are likely to be fraudulent, they employ event study analysis to measure abnormal returns of outlying transactions. The results are compared to the abnormal returns of non-outlying transactions. They find that outlying transactions gain higher abnormal returns than transactions that are not flagged as outliers. Business intelligence and analytics may be a useful strategy for detecting and preventing of financial fraud for companies.
16
Oluyeju, M., e O. Oluyeju. "Legal Protection of Investors from the Corporate Malfeasance of Insider Dealings: A South African-Canadian Comparative Review". BRICS Law Journal 9, n. 1 (18 aprile 2022): 136–67. http://dx.doi.org/10.21684/2412-2343-2022-9-1-136-167.
Testo completoAbstract (sommario):
Ensuring market discipline, integrity, and transparency with the overall aim of protecting the investing public is critical to the wellness of a capital market and a financial system. However, one corporate ill besetting the securities markets in all jurisdictions is insider trading. Apart from being unethical, insider trading disrupts market dynamics. In South Africa, over the years, successive Acts have been enacted, amended, and repealed to ensure discipline and protect the integrity of the nation’s securities market. In 2012, the Financial Markets Act of 2012 (FMA) was enacted to improve, among others, the enforcement of insider trading regulation in South Africa. However, the regulation of insider trading and its enforcement in terms of the FMA have been insufficient. This article therefore seeks to benchmark the South African position against Canadian model with the objective of drawing lessons for South Africa. The choice of Canada was informed by the fact that Canada has a well-developed anti-insider trading regulatory framework and presents a case study of international best practices in the regulation of insider trading. Therefore, the conclusion in this article is that with creative and appropriate reforms of the FMA, using the Canadian model, the investing public will be adequately protected against insider trading, and investors’ confidence and the financial markets’ integrity and efficiency will be better enhanced.
17
Nwafor, Anthony O. "Public health emergency and insider trading in the corporate sector". Journal of Governance and Regulation 10, n. 4 (2021): 104–12. http://dx.doi.org/10.22495/jgrv10i4art9.
Testo completoAbstract (sommario):
As governments in different parts of the world seek solutions to the public health emergency created by the COVID-19 pandemic and the impacts on corporate enterprises, different steering committees are constituted to implement measures aimed at containing the spread of the disease. Information that has the potential to impact materially on companies’ securities when made public is shared among committee members in the course of their deliberations. That realization informs the purpose of this paper which is to explore through doctrinal research method the law on insider trading in South Africa in such a manner as would reaffirm the position of the law on insider, inside information, and the prohibited conducts. The findings indicate a propensity by those entrusted with business information to leverage such information for personal benefits which creates a problem of uncertainties on the integrity of the securities market. The paper concludes by advocating the application of the law in such a manner as would ensure that the conduct of persons entrusted with inside information is guided by the legal threshold on insider trading.
18
Wang, Jasmine Qiuyue. "A Contemporary Analysis of the Application of Sentencing Factors in Insider Trading Cases". Deakin Law Review 22, n. 1 (23 febbraio 2018): 107. http://dx.doi.org/10.21153/dlr2017vol22no1art724.
Testo completoAbstract (sommario):
Insider trading is a complex issue that involves both corporate and criminal law. Since the introduction of civil penalties, the Australian Securities and Investments Commission (ASIC) has only pursued one civil proceeding against insider trading. ASIC prefers criminal proceedings for their deterrent effects. This paper examines various features of Australian convicted insider trading cases from 2004 to the end of 2015 and provides a broad overview of the distribution of these cases. Further, this paper assesses the consistent application of sentencing factors and the determination of criminalities of different kinds of insider trading activities. Finally, this paper proposes renaming current insider trading laws to ‘dealing with privileged information’.
19
Bali, Reema. "INSIDER TRADING IN INDIA - RULES TILL NOW". International Journal of Research -GRANTHAALAYAH 8, n. 9 (25 settembre 2020): 49–53. http://dx.doi.org/10.29121/granthaalayah.v8.i9.2020.1072.
Testo completoAbstract (sommario):
This paper analyses the lose threads amongst the SEBI (“Securities and Exchange Board of India”) as a regulatory authority (“regulator”) who are required enforce the laws and reforms to efface insider trading in the Indian economy. The paper focuses on the role of regulatory authority dealing with the cases of insider trading and the elements that might lead to delay in the resolving the matters which leads to piling up of unresolved matters in insider trading leading to disturbing the economy and loss of faith of investors on the trading activities of stock market.
20
Ghosh, Anuradha. "The Need to Legalize and Regulate Insider Trading - An Analysis". Christ University Law Journal 9, n. 1 (13 agosto 2021): 49–71. http://dx.doi.org/10.12728/culj.16.3.
Testo completoAbstract (sommario):
Insider trading is perceived as a problem across capital mar-kets. The Securities Exchange Board of India (SEBI) created the SEBI (Prohibition of Insider Trading) Regulations, 2015, which criminalizes insider trading. However, insider trading laws have faced several problems at the implementation and enforcement stage. This article considers these problems from the viewpoint of the economic rationale that insider trading should be permitted in capital markets and thus le-galized. These economic arguments have largely been ig-nored by regulators who have continued to come down hard upon insider trading, despite limited success. Moreover, due to concerns related to privacy, insider trading investigations may face greater hurdles in the future. This article takes these factors and economic arguments into consideration and balances them against the regulators' concerns to suggest that insider trading be not only prima facie legalized, but also regulated when there is a breach of fiduciary duties or when there is a dissemination of positive information.
21
George, Barbara Crutchfield, e Maria Boss. "Corporate Insider Trading: New Dimensions In Liability". Journal of Applied Business Research (JABR) 2, n. 4 (1 novembre 2011): 106. http://dx.doi.org/10.19030/jabr.v2i4.6563.
Testo completoAbstract (sommario):
At first glance it may appear that the law which prohibits the use of material non-public information only applies to the technical insider (e.g., corporate directors and officers). However, the scope of the prohibition encompasses persons other than technical insiders. Because the statutory language in Section 10 (b) is broad in scope, and for that matter never mentions directly or indirectly the term insider trading, the United States Supreme Court will ultimately have to determine to whom the term insider can be applied. At the present time there is a conflict between the lower courts and the Securities and Exchange Commission (SEC), on the one hand and the U.S. Supreme Court, on the other, in the handling of insider trading cases: the lower courts and the SEC are expanding the scope of liability for insider trading, but this expansion has been rejected by the high court when it has been confronted with such expansion attempts.
22
Kwan, Martin YC. "Restoring transactions unknowingly tainted by insider trading". Common Law World Review 47, n. 2 (11 maggio 2018): 150–59. http://dx.doi.org/10.1177/1473779518773646.
Testo completoAbstract (sommario):
In the Hong Kong Court of Appeal decision The Securities and Futures Commission v Young Bik Fung and others, the Court applied s. 213(2)(b) of the Securities and Futures Ordinance (SFO) to restore two transactions of shares entered into by an investor who invested based on ‘information, advice or tips’ given by an insider, despite the investor did not know that the advice was based on inside information and was not guilty of insider trading. Nevertheless, the investor was ordered to repay the profits made as if the transactions had not been made. It is suggested that the restoration order in Hong Kong has the widest scope of application among the major common law jurisdictions, because Hong Kong is the only jurisdiction where a person who has not committed any market conduct can nevertheless be subject to a restoration order. The Court justified such wide scope of application with reference to the paramount policies of minimizing market misconduct and ensuring no benefits is obtained from insider dealing by anyone. By a comparative law analysis, it is argued that s. 213(2)(b) SFO has been wrongly interpreted. The paramount policies should not be blindly applied without giving proper consideration to other established principles of law, such as the fundamental right to property of the unknowing investor.
23
Jardak, Maha Khemakhem, e Hamadi Matoussi. "The effectiveness of insider trading disclosure policies: US and EU comparison". Journal of Financial Reporting and Accounting 18, n. 3 (29 giugno 2020): 591–614. http://dx.doi.org/10.1108/jfra-09-2019-0120.
Testo completoAbstract (sommario):
Purpose The purpose of this study is to examine the effectiveness of financial market rules in protecting minorities. Design/methodology/approach The study compares two alternative disclosure rules on insider trading, namely, the market abuse directive (Directive 2004/72/EC), inspired from the United State (US) insider trading regulation enacted by the Sarbanes–Oxley act and the transparency directive enacted by the European (Directive 2004/109/EC) dealing with the crossing of the shareholding threshold. To investigate which one is more effective in signaling reserved information, and thus in reducing information asymmetry, the authors run an event study on the French context, where both regulations are adopted. The data were hand collected from the French stock exchange securities commissions during the two years following the implementation of the two regulations in 2004. The final sample consists of 363 insiders trading and 35 crossing shareholding thresholds for 10 top French firms during the period 2006-2007. Findings The results show that the French market reacts significantly to insider trading, but poorly to the crossing shareholding thresholds. Abnormal returns are greater after insider purchases than after crossing up thresholds. These findings support the superiority of the insider disclosure regulation, as it has better information content and provides better protection to minorities. Research limitations/implications The study contributes to the corporate governance literature by comparing two disclosure-trading policies. The authors conclude that regulation of disclosure of insider trading along the lines of US disclosure rules is more informative to the market and thus more relevant and important than disclosure of cross-threshold trades. Practical implications The study contributes to the corporate governance literature by comparing two disclosure-trading policies. The authors conclude that regulation of disclosure of insider trading along the lines of US disclosure rules is more informative to the market and thus more relevant and important than disclosure of cross-threshold trades. This finding can be helpful for the securities lawmakers and regulators in the process of insider trading law enforcement. Originality/value Previous researchers approached the question of insider trading focusing on the identity of insiders. In the research, the authors address the question from another perspective, namely, the crossing of thresholds. Another methodological contribution of the study is the use of a market model that incorporates GARCH (generalized autoregressive conditional heteroskedastic) effect and time-varying systematic risk parameter (β), which is recommended to tackle the classical event study problem of detecting the exact timing of the event.
24
Loh, Charmen. "Poison Pill Securities: Shareholder Wealth and Insider Trading". Financial Review 27, n. 2 (maggio 1992): 241–57. http://dx.doi.org/10.1111/j.1540-6288.1992.tb01316.x.
Testo completo
25
Thompson, James H. "A Global Comparison of Insider Trading Regulations". International Journal of Accounting and Financial Reporting 3, n. 1 (16 febbraio 2013): 1. http://dx.doi.org/10.5296/ijafr.v3i1.3269.
Testo completoAbstract (sommario):
As the business world continues to expand in global markets, trading of shares, bonds, derivatives and other instruments continues to increase. One form of trading that has received considerable interest in recent years is insider trading. Insider trading occurs when individuals with potential access to non-public information about a corporation buy or sell stock of that corporation. When the information is material and non-public, such trading is illegal. However, if the trading is done in a manner that does not take advantage of non-public information, it is often permissible. This study compares insider trading laws, penalties, and convictions in countries represented by the 14 largest securities markets throughout the world and provides data indicating that there are important differences.
26
Salbu, Steven R. "A Critical Analysis of Misappropriation Theory in Insider Trading Cases". Business Ethics Quarterly 2, n. 4 (ottobre 1992): 465–77. http://dx.doi.org/10.2307/3857583.
Testo completoAbstract (sommario):
Under the present judicial interpretation of federal securities law, an individual is prohibited from trading on non-public information that has been misappropriated in contravention of a fiduciary duty. Trades made using non-public information that has not been misappropriated are not prohibited by Rule 10b-5, promulgated under the Securities and Exchange Act of 1934. The current requirement of misappropriation to trigger Rule 10b-5 liability creates a gap that permits transactions that are both ethically and economically undesirable. Judicial or legislative reforms are recommended to close the gap and help ensure the fairness and efficiency of securities markets.
27
Augustin, Patrick, Menachem Brenner e Marti G. Subrahmanyam. "Informed Options Trading Prior to Takeover Announcements: Insider Trading?" Management Science 65, n. 12 (dicembre 2019): 5697–720. http://dx.doi.org/10.1287/mnsc.2018.3122.
Testo completoAbstract (sommario):
We quantify the pervasiveness of informed trading activity in target companies’ equity options before the announcements of 1,859 U.S. takeovers between 1996 and 2012. About 25% of all takeovers have positive abnormal volumes, which are greater for short-dated, out-of-the-money calls, consistent with bullish directional trading before the announcement. Over half of this abnormal activity is unlikely due to speculation, news and rumors, trading by corporate insiders, leakage in the stock market, deal predictability, or beneficial ownership filings by activist investors. We also examine the characteristics of option trades litigated by the Securities and Exchange Commission (SEC) for alleged illegal insider trading. Although the characteristics of such trades closely resemble the patterns of abnormal option volume in the U.S. takeover sample, we find that the SEC litigates only about 8% of all deals in it. This paper was accepted by Lauren Cohen, finance.
28
Tomasic, Roman, e Brendan Pentony. "The prosecution of insider trading: Obstacles to enforcement". Australian & New Zealand Journal of Criminology 22, n. 2 (giugno 1989): 65–81. http://dx.doi.org/10.1177/000486588902200201.
Testo completoAbstract (sommario):
Insider trading has been criminalised in Australia for over a decade. Yet there have been few prosecutions in respect of such conduct, and none of these have been successful. There is little doubt that insider trading in Australia is extensive and is to be found across many sectors of the securities industry. Despite this, the law has not proved to be an effective vehicle for the social control of insider trading or for the deterrence of such conduct. It seems that the criminal sanctions for insider trading have been largely symbolic in nature. This article explores the obstacles to enforcement of criminal laws in this area by reference to findings from a national empirical study funded by the Criminology Research Council. The study involved in-depth interviews with almost 100 key figures in the Australian securities industry (brokers, lawyers, merchant bankers etc) and of officials involved in its regulation (from the Corporate Affairs Commissions and the Australian Stock Exchange). Problems in detection, proof and punishment, in the nature and extent of regulatory resources devoted to this area and in the content of the law itself are identified and discussed.
29
Manchikatla, Anil Kumar, e Rajesh H. Acharya. "Insider trading in India – regulatory enforcement". Journal of Financial Crime 24, n. 1 (3 gennaio 2017): 48–55. http://dx.doi.org/10.1108/jfc-12-2015-0075.
Testo completoAbstract (sommario):
Purpose The purpose of this paper is to study the effectiveness of insider trading enforcement actions in India and international dimensions. Design/methodology/approach The research is based on the insider trading regulations and amendments made during the period 1992-2015. Findings The notable observation of the study is the dearth of insider trading conviction and the paucity of prosecution for insider trading offences in India. It is difficult to resist the conclusion that surveillance and enforcement matter more than the drafting of the relevant statutes and regulations in emerging markets. Whereas, developed countries have a better record of prosecution than emerging markets. Research limitations/implications Future research may explore the factors that hinder effective regulation and recommend new methods to increase the impact of Securities and Exchange Board of India insider trading regulation. Originality/value The current paper presents guidance for the foreign institutional investors, regulators and market participants on insider trading regulation and prosecution in India.
30
Spaic, Aneta, Claire Angelique Nolasco, Lily Chi-Fang Tsai e Michael S. Vaughn. "Does insider trading pay?" Journal of Financial Crime 26, n. 2 (1 aprile 2019): 647–64. http://dx.doi.org/10.1108/jfc-07-2018-0068.
Testo completoAbstract (sommario):
Purpose This paper analyzes trading and tipping activities in insider trading litigation decided by federal courts from January 1, 2012 to December 31, 2014. Design/methodology/approach Legal documents from the US Securities and Exchange Commission, LexisNexis and Westlaw databases were coded to determine profile, patterns of trading and settlement outcomes. Findings Results of statistical analysis indicate that a defendant in both civil and criminal cases is more likely to trade on the information when he/she receives a direct, financial benefit from breaching his/her duty of confidentiality. The defendant tipper is also more likely to pass on the information to a close personal friend, business associate or family member. The average amount of profit of defendants in both civil and criminal proceedings substantially exceeds the average amount of their settlements. Originality/value This paper offers support for the rational choice model – insider trading is often based on rational calculations of benefits not only to the defendant but also to his/her family and associates. Although the threat of civil enforcement and criminal proceedings may possibly deter him/her from committing the crime, results indicate that the amounts of settlement in both proceedings are considerably lower than the amount of profits obtained from the offense.
31
Dhamija, Sanjay, e Reena Nayyar. "Lux Industries Limited: a case of insider trading". Emerald Emerging Markets Case Studies 13, n. 1 (1 maggio 2023): 1–22. http://dx.doi.org/10.1108/eemcs-05-2022-0168.
Testo completoAbstract (sommario):
Learning outcomes After reading the case, the students shall be able to explain the concept of insider trading and differentiate between illegal insider trading and legal insider trading, business ethics, financial institutions, financial markets and accounting; to interpret the legal framework for prevention of insider trading; to identify the role and significance of the market regulator, Securities and Exchange Board of India (SEBI), in detecting financial crimes such as insider trading; to demonstrate the association between information, stock trading and stock prices within the framework of efficient markets; and to appraise the ethical dilemma in a family-owned firm, where the family members of the promoter group are alleged to have indulged in a financial crime. Case overview/synopsis The case revolves around allegations of insider trading against the promoter and the promoter group of the family owned and controlled firm, Lux Industries Limited. On January 24, 2022, the SEBI, the regulator of securities markets in India, accused Udit Todi, the Executive Director of Lux Industries Limited, of engaging in insider trading through a chain of 14 connected parties. Udit Todi was also the son of the Managing Director, Pradip Kumar Todi, and the nephew of the Executive Chairman, Ashok Kumar Todi. In its interim order, SEBI alleged a breach of insider trading regulations by a group of 14 connected entities that had built up long positions starting from May 21, 2021, before the quarterly financial results (Q4) and the annual results of the financial year (FY) 2021 in the equity shares of Lux Industries Limited, with its registered office in Kolkata, India, were announced. Subsequently, they squared off the long positions to make a profit of ₹29.43m. To restore the confidence of the investors, the Executive Chairman, Ashok Kumar Todi, needed to review the matter expeditiously and impartially. Taking into consideration the family ties of the accused, it was not going to be an easy task, yet, it had to be done. The case highlights the role of the regulator, SEBI, in unearthing financial frauds such as insider trading in an emerging market such as India. Complexity academic level Postgraduate programs in management, Executive education programs. Supplementary materials Teaching notes are available for educators only. Subject code CSS 1: Accounting and Finance
32
Jain, Pawan, e Mark A. Sunderman. "Stock price movement around the merger announcements: insider trading or market anticipation?" Managerial Finance 40, n. 8 (8 luglio 2014): 821–43. http://dx.doi.org/10.1108/mf-09-2013-0256.
Testo completoAbstract (sommario):
Purpose – The purpose of this paper is to examine the stock price movements for existence of informed trading prior to a merger announcement for the companies listed on the emerging markets of India for the period from 1996 to 2010. Design/methodology/approach – This study applies several event study methodologies and regression analyses to analyze the stock price movement surrounding a merger announcement. The paper divides mergers in two different types: industry merger cases and non-industry merger cases and in two different time periods: recession and boom. Findings – The results show that the information held only by insiders’ works its way into prices. The paper finds strong evidence of insider trading in the case of industry mergers and mergers during recessions. Practical implications – The results from this study have immediate policy implications for India and other developing markets as the paper provides the type of mergers and time periods when merger announcements are more susceptible to insider trading. Originality/value – The paper extends the literature on mergers and insider trading by analyzing firms trading on a developing capital market, which, unlike the developed markets, is characterized by inadequate disclosure and a weaker enforcement of securities regulations. The results support this notion and recommend Indian securities market regulators to tighten the lax regulations. In addition, the author document the divergence in price reaction to the merger announcements for different types of mergers: industry mergers and non-industry mergers, as well as for mergers during different market conditions: recession vs booming capital markets.
33
Fandella, Paola. "Theoretical Profiles for the Evaluation of Insider Trading in a Functional Model of Financial Instruments Market". International Journal of Business Administration 9, n. 1 (12 dicembre 2017): 1. http://dx.doi.org/10.5430/ijba.v9n1p1.
Testo completoAbstract (sommario):
The analysis is based on the premise that the capital market is characterized by weak forms of risk management, to be intended, in this case, as risk of information asymmetry as well as operational inefficiency, as there are no hedging schemes to prevent external actions and internal mechanisms are not inspired by adequate transparency principles.After a critical review of the theoretical effects of insider trading, starting with a market equilibrium assessment, this analysis seeks to demonstrate the absence of any positive effect linked to insider trading in relation to any type of variable and for any model of the securities market.Starting from the assumption that the negative trading activity of insiders manifests in any securities market structure, it has been shown that an operating model characterized by the presence of professional operators appears to be more capable of opposing a significant barrier to the entry of insiders.On the other hand, it has also been shown that the presence of professional operators cannot act alone and it may also lose action incisiveness and even cause informative viscosity effect, when such professional or institutional operators are directly involved in privatization operations.
34
Caccese, Michael S. "Insider Trading Laws and the Role of Securities Analysts". Financial Analysts Journal 53, n. 2 (marzo 1997): 9–12. http://dx.doi.org/10.2469/faj.v53.n2.2066.
Testo completo
35
Taleska, Ana. "European Insider Trading Theory Revisited: The Limits of the Parity-of-Information Theory and the Application of the Property Rights in Information Theory to Activist Investment Strategies". European Company and Financial Law Review 17, n. 5 (10 novembre 2020): 558–600. http://dx.doi.org/10.1515/ecfr-2020-0024.
Testo completoAbstract (sommario):
AbstractParity-of-information is purported to be the single overarching policy rationale for the European Union (EU) regulation on insider trading. This is because securities trading on the basis of informational advantages is generally prohibited under EU rules, as is tipping (and issuers’ selective disclosure) of material, non-public information. Yet, EU regulations allow market actors, including investment professionals and analysts, that have discovered valuable information -and thereby, have an informational advantage vis-à-vis their trading counterparties- to trade on this information. Relatedly, issuers of financial instruments, takeover bidders and merging parties can share information with a selected group of investors prior to public announcement of the transaction (market sounding), whereas firms can delay public disclosure of inside information and prevent all other market participants from trading on this information. I argue that these exceptions from the parity-of-information theory are -from a doctrinal standpoint- best explained as property rights in information of market actors that have developed new proprietary information with respect to European listed securities. This article, therefore, aims at providing a property rights account of the exceptions to the parity-of-information theory and it illustrates the trade-offs between the parity-of-information and the property rights in information theories underlying European insider trading rules. By extension, I analyze the specific case of activist campaigns as inside information and argue that it would be consistent with the property rights approach to allow activist investors to share their investment and trading strategies with other market participants that further their activist agenda.
36
Riyanto, Agus, Paulus Aluk Fajar Dwi Santo e Suwardi. "Trapping Insider Trading Perpetrators with Misappropriation Theory, Is That Possible?" E3S Web of Conferences 388 (2023): 03024. http://dx.doi.org/10.1051/e3sconf/202338803024.
Testo completoAbstract (sommario):
In Indonesia, insider trading is a crime that the perpetrators do not easily catch. This is sourced from the theory of fiduciary obligations in Article 95 of Law no. 8 of 1995 concerning the Capital Market and restrictions on insider trading. In the United States, using the abuse theory in Sections 10(b) and Sections 10b-5, the Securities and Exchange Act of 1934 can reach anyone, without limitation, which is categorized as an insider trader. The main purpose of this paper is to find new ideas about the existing obstacles to ensnare insider trading actors that have been happening in Indonesia so far. For this reason, the method used is to compare regulations and insider trading cases in the two countries. This study shows that it is time for Indonesia to adopt the theory of misappropriation as an alternative to trapping insider trading actors in the capital market. This urgency is needed to foster investor confidence in the growth and development of the Capital Market in Indonesia.
37
Syarief, Elza, e Junaidi Junaidi. "Perlindungan Hukum Pemegang Saham Minoritas Terhadap Implikasi Praktik Insider Trading dalam Perdagangan Saham di Pasar Modal". Journal of Law and Policy Transformation 6, n. 1 (11 giugno 2021): 72. http://dx.doi.org/10.37253/jlpt.v6i1.4875.
Testo completoAbstract (sommario):
The capital market is a means provided in order to find sources of financing and as a means of investment that involves all potential public funds, both those available domestically and those available abroad. This study uses a normative science study using a librarian study in the form of law and is assisted by primary data sources and secondary data sources. The results show that minority shareholders own less than 5% of the total shares traded in the capital market. Meanwhile, insider trading is a practice in which a corporate insider transacts securities using exclusive information that they have that is not yet available to the public. The position of Minority Shareholders regarding the practice of insider trading in trading shares in the capital market is the cause of the practice of insider trading. Therefore, legal protection for minority shareholders in the practice of insider trading in stock trading in the capital market is carried out by applying applicable laws and using the theory of legal protection by Philipus M. Hadjon.
38
MALYSHENKO, K. A., V. A. MALYSHENKO, E. S. BEKIROVA, S. N. BEKIROV, S. V. ARKHIPOVA e M. V. ANASHKINA. "Criminal-legal Mechanism of Counteraction of Insider Activity in the Stock Market". Journal of Advanced Research in Law and Economics 10, n. 3 (30 giugno 2019): 842. http://dx.doi.org/10.14505//jarle.v10.3(41).20.
Testo completoAbstract (sommario):
Protecting the rights of stock market participants in the modern world is an important aspect of its functioning, ensuring the security of investments of participants and their property status. The misuse of insider information with the aim of obtaining certain benefits, and market manipulation are some of the most ambitious crimes that violate the rights of a wide range of people, and a direct threat to their material well-being. Insider trading involves trading transactions with securities, which is carried out by private individuals, holding information about the Issuer of the financial asset.
In this work, we use methods of legal statistics that allow us to obtain quantitative data on the application of liability for violations of anti-insider Russian legislation. In addition, a comparative legal method is used to comparatively characterize measures to combat insider activity in the world.
The purpose of the research is to identify the shortcomings of the modern criminal law mechanism for countering insider activity in the Russian securities market and develop measures to improve its effectiveness. The criminal law regulation of insider information in the world and domestic experience are analyzed.
As a result of the study, a number of shortcomings inherent in this mechanism were identified. Thus, the study of foreign practice has shown that the existing measures in Russia to combat insiders in the securities market are not effective. This is due to many factors, the main of which are the imperfection of the legal framework, the lack of practical application of criminal penalties, their low effectiveness, the lack of specific penalties, etc. The article highlights the problems of administrative and criminal liability for market manipulation and illegal use of insider information. The article analyzes the criminal law regulation of mitigating liability for insider information in the world and domestic experience.Based on the analysis and comparison of Russian and international practices in the fight against insiders, conclusions are drawn about the need to adjust the domestic monitoring mechanism and improve criminal law methods to ensure its functioning.The article actualizes the problems of administrative and criminal liability for the manipulation of the market and the misuse of insider information.
39
Morgan, Nicolas, Art Zwickel, Thomas A. Zaccaro e Jenifer Q. Doan. "SEC requires hedge funds to prevent insider trading despite unsettled legal definition". Journal of Investment Compliance 18, n. 1 (2 maggio 2017): 63–64. http://dx.doi.org/10.1108/joic-02-2017-0014.
Testo completoAbstract (sommario):
Purpose To explain the import of a recent enforcement action by the US Securities and Exchange Commission (SEC) against an investment adviser for failing to prevent insider trading against the context of an unsettled legal definition of “insider trading” as evidenced by the issue presented in a recent case before the US Supreme Court. Design/methodology/approach Reviews the principal issues raised by the SEC in its enforcement action, legal requirements imposed on investment advisers, and the insider trading issues presented by the US Supreme Court case. Findings Because the legal concept of insider trading has developed through case law and is not defined by statute, it remains uncertain, and therefore the practice of insider trading will be difficult to prevent without restricting activities that could ultimately be determined to be legal. Practical implications In light of the SEC’s high threshold for investment advisers to prevent insider trading and the uncertain legal definition of that concept, investment advisers should review their insider trading policies and err on the side of caution. Originality/value Practical guidance from an experienced former SEC counsel and SEC practitioners offers new insights into the steps investment advisers should take in response to SEC enforcement activities and nebulous legal definitions.
40
Huang, Robin Hui. "Enforcement of Chinese Insider Trading Law: An Empirical and Comparative Perspective". American Journal of Comparative Law 68, n. 3 (1 settembre 2020): 517–75. http://dx.doi.org/10.1093/ajcl/avaa018.
Testo completoAbstract (sommario):
Abstract This Article conducts the first comprehensive and systematic empirical analysis of all relevant insider trading cases in China from the birth of Chinese securities markets in the early 1990s until mid-2017, shedding light on the way in which China’s insider trading law has been enforced by the regulator and criminal courts in practice. First, the Article generates descriptive statistics on features of insider trading cases, such as the total number of cases over the study period, the temporal distribution of the cases, the identity of the insider, and the nature of the insider information. Second, it measures the intensity of insider trading enforcement and compares the Chinese situation with six overseas jurisdictions, including the United States, the United Kingdom, Australia, Canada, Singapore, and Hong Kong. Third, using multiple regression analyses, it identifies potential factors determining the administrative and criminal penalties for insider trading. The results of the empirical study indicate that China has significantly stepped up its efforts to crack down on insider trading in recent years, resulting in a sharp increase in insider trading cases, particularly criminal cases since 2008. While the Chinese insider trading law was essentially transplanted from overseas jurisdictions, its; enforcement has exhibited distinctive features in its local environment. Judging by the type, magnitude, and frequency of the sanctions imposed, the intensity of insider trading enforcement in China seems to be at a level comparable to relevant jurisdictions overseas. Administrative and criminal penalties against insider trading are found to be significantly influenced by some factors, notably the amount of illegal proceeds, the magnitude of social impact, the presence of mitigating circumstances, and whether the trader used others’ accounts to trade. The hope is that the empirical findings will help inform the policy debate over the regulation of insider trading in China and beyond.
41
Khan, Najeeb ullah, e Ikram Ullah. "The Law of Insider Trading in Pakistan: Focusing Associated Person & Connected Person". Global Legal Studies Review VI, n. II (30 giugno 2021): 48–59. http://dx.doi.org/10.31703/glsr.2021(vi-ii).07.
Testo completoAbstract (sommario):
The legal mechanism that has been adopted for insider trading in Pakistan focuses on the associated and connected person includes Securities and Exchange Ordinance 1969 and Companies Ordinance 1984. The paper discusses the key issues regarding the associated and connected person and legal regime regarding the effectiveness of insider trading in Pakistan. This paper examines the existing laws in Pakistan, which specifically focus upon market-oriented regulations and economic development. The focus of this paper is to highlight the legal framework and connectivity between associated and connected persons affiliated with insider trading and other prohibitions which are provided in the SECP regularities of Pakistan.To tackle the misleading information and devaluation of market prices through insider trading is also part of this paper, along with some basic information like defrauding the market and, consequently, the shareholder sat large will also be discussed in this paper.
42
Mubarok, Anas Bayan, e Muhamad Izazi Nurjaman. "ANALYSIS OF INVESTOR BEHAVIOR IN THE ETHICAL REVIEW OF SHARIA ECONOMIC LAW". AT-TIJARAH: Jurnal Penelitian Keuangan dan Perbankan Syariah 6, n. 1 (30 giugno 2024): 22–37. http://dx.doi.org/10.52490/attijarah.v6i1.2803.
Testo completoAbstract (sommario):
This research aims to analyze investor behavior in reviewing the ethics of sharia economic law. This research includes library research using descriptive analytical research methods with a qualitative approach. The data analysis technique is carried out in three stages, namely data reduction, data presentation and conclusions. The results of this research reveal that in securities trading on the Sharia Capital Market it is still possible for behavior or actions to occur that violate professional ethics and existing rules. The two main actors who play a role in securities trading practices in the Sharia Capital Market are the behavior of issuers and investors. There are several deviant activities in securities trading practices in the Sharia Capital Market, namely: first, Fraud, this fraudulent act can include the behavior of Misleading information, Pooling interest, and Alternate trade. Second, market manipulation, including the practice of: Wash sale, Pre-arrange trade, Pump and Dump, Hype and Dump, Creting fake demand/supply), Cornering, and Marking at the close. Third, the use of insiders can be in the form of insider trading and front running. Some of these investors' behavior is not in accordance with the ethics of the sharia economics profession which can lead to unhealthy sharia capital market business behavior.
43
Dey, Shantanu. "Insider Trading Regime in India: Learning Lessons from the US and UK Regulatory Experience". Business Law Review 37, Issue 1 (1 febbraio 2016): 19–28. http://dx.doi.org/10.54648/bula2016004.
Testo completoAbstract (sommario):
The issue of insider trading has assumed increasing relevance in the Indian context in light of the corporate governance crisis faced in the contemporary era. With the Securities and Exchange Board of India (‘SEBI’) arguing for stricter and smarter regulation of stock market transactions with the objective of regaining investor confidence, the academic discourse in favour of legalization of insider trading has gained mileage. Through this paper, the author seeks to examine the regulatory attitude towards the continued scrutiny of insider trading transactions utilizing the model endorsed by the recently introduced SEBI (Prohibition of Insider Trading Regulations) 2015.Through this paper, the author seeks to discuss the development of the insider trading regulatory regime in India in a comparative context utilizing a ‘governance approach’ to the issue and its interaction with the functioning of capital markets. The paper focusses on the line of argumentation employed by Henry Manne to justify the productivity of such transactions visà- vis its impact on the economy and attempts to highlight the implausible application of such theoretical logicality. While discussing the literature available on the topic, the article will constantly draw its analysis from the jurisprudential foundations of the SEBI (Prohibition of Insider Trading Regulations) 1992 and 2015 heavily influenced by the American jurisprudence on this subject.
44
Green, Jonathan, e Aaron Miner. "Mark Cuban defense verdict highlights difficulty of proving “misappropriation” theory of insider trading". Journal of Investment Compliance 15, n. 1 (27 febbraio 2014): 38–40. http://dx.doi.org/10.1108/joic-02-2014-0012.
Testo completoAbstract (sommario):
Purpose – To summarize and draw conclusions from the insider trading suit brought against well-known entrepreneur Mark Cuban in 2008. Design/methodology/approach – Summarizes the facts of the 2008 case, brought by the SEC against Cuban for allegedly misappropriating material, non-public information conveyed to him purportedly pursuant to a confidentiality agreement. Reviews the basics of the misappropriation theory of insider trading, and the basis of the jury verdict in Cuban's favor. Concludes by stressing that securities analysis and major investors should still remain cautious, and explains why. Findings – The Cuban verdict appears, at first glance, to be a substantial victory for securities analysts and major investors whose businesses depend on regular communications with corporate insiders or others who possess material non-public information. It demonstrates the challenges the SEC faces under existing law in establishing a relationship of trust and confidence between the recipient of alleged material, non-public information and the source of that information for purposes of proving misappropriation liability. Nevertheless, the Cuban judgment did not ultimately turn on the existence of such a relationship, and the contours of misappropriation liability remain unsettled. Accordingly, securities analysts, investors and any other entity or individual who receives information pursuant to a confidentiality agreement should remain cautious and refrain from acting on material, non-public information regardless of the circumstances. Originality/value – Practical explanation by experienced litigators.
45
Chitimira, Howard. "A Historical Overview of the Regulation of Market Abuse in South Africa". Potchefstroom Electronic Law Journal/Potchefstroomse Elektroniese Regsblad 17, n. 3 (24 aprile 2017): 971. http://dx.doi.org/10.17159/1727-3781/2014/v17i3a2275.
Testo completoAbstract (sommario):
In an early attempt to combat market abuse in the South African financial markets, legislation such as the Companies Act, the Financial Markets Control Act and the Stock Exchanges Control Act were enacted. However, these Acts failed to effectively curb market abuse activities that were allegedly rife in the financial markets. Consequently, the Insider Trading Act was enacted and came into effect on 17 January 1999. While the introduction of the Insider Trading Act brought some confidence in the financial markets, market abuse activities were still not extinguished. The provisions of the Insider Trading Act were to some extent inadequate and ineffectively implemented. Eventually, the Securities Services Act was enacted to repeal all the flawed provisions of the Insider Trading Act. Notwithstanding these efforts on the part of the legislature, more may still need to be done to increase the number of convictions and settlements in cases involving market abuse in South Africa. It is against this background that a historical overview analysis of the regulation of market abuse is carried out in this article to expose the flaws that were previously embedded in the South African market abuse laws prior to 2004. This is done to raise awareness of the situation on the part of the relevant stakeholders, as they consider whether such flaws were adequately resolved or subsequently re-introduced under the Securities Services Act and the Financial Markets Act. To this end, the article firstly discusses the historical development and regulation of market manipulation prior to 2004. Secondly, the regulation and enforcement of insider trading legislation prior to 2004 are examined. Moreover, where possible, certain flaws of the previous market abuse laws that were re-incorporated into the current South African market abuse legislation are isolated and recommendations are made in that regard.
46
Estrada, Javier. "Insider trading: Regulation, securities markets, and welfare under risk aversion". Quarterly Review of Economics and Finance 35, n. 4 (dicembre 1995): 421–49. http://dx.doi.org/10.1016/1062-9769(95)90040-3.
Testo completo
47
Anashkina, M. V. "The evolution of the securities market and modern problems of control of its participants". Vestnik Universiteta, n. 8 (30 settembre 2022): 129–38. http://dx.doi.org/10.26425/1816-4277-2022-8-129-138.
Testo completoAbstract (sommario):
The purpose of the study is to determine the nature of the impact of digitalization of the domestic securities market on the development of the securities market and the presence of unfair practices on it, in particular, insider trading and manipulation. In the context of the development of technologies and their mass introduction into the financial system, in addition to positive effects, new problems arise related to the control and regulation of its individual elements. Thus, the digitalization of the securities market infrastructure requires the development of a new system of control over compliance with legislation in the field of countering unfair practices. It is necessary to develop new forms and methods of identification and control that meet the level of technologies being implemented. The subject of the study is changes in the securities market and the system of countering unfair practices in the process of its development. The article discusses the main stages of the development of the securities market. Methods of analysis, synthesis and systematisation of data were used. The main problems of countering insider trading and manipulation arising in connection with the introduction of new forms of functioning of the securities market are identified. The scientific significance of the study is to identify the main problems associated with the inconsistency of the existing system for identifying and controlling unfair practices and the current level of development of the securities market infrastructure.
48
Deodato, Felipe, Igor De Lucena Mascarenhas e Patricia Carvalho. "Crime e compensação: uma análise do insider trading no Brasil". Revista de Direito Econômico e Socioambiental 11, n. 2 (28 dicembre 2020): 321. http://dx.doi.org/10.7213/rev.dir.econ.soc.v11i2.26620.
Testo completoAbstract (sommario):
Este texto busca fomentar discussão a respeito da figura do insider trading, o detentor de informação privilegiada em negociação de ações, no âmbito da legislação brasileira. Em vários países essa prática do insider é condenada, pois acarreta um desequilíbrio nas transações de agências. Nos EUA a prática do insider vem regulada em rígidas disposições legais, dentre elas no Securities Exchange Act, ao passo que no Brasil a legislação é extremamente tolerante e insuficiente para dissuadir e prevenir a conduta penalmente tipificada. Torna-se imperiosa a revisão da legislação nacional para endurecer as penalidades e, sobretudo, tornar a fiscalização mais efetiva.
49
Ryan, Stephen G., Jennifer Wu Tucker e Ying Zhou. "Securitization and Insider Trading". Accounting Review 91, n. 2 (1 luglio 2015): 649–75. http://dx.doi.org/10.2308/accr-51230.
Testo completoAbstract (sommario):
ABSTRACT Securitizations are complex and opaque transactions. We hypothesize that bank insiders trade on private information about banks': (1) securitization-related recourse risks, (2) not-yet-reported current-quarter securitization income, and (3) securitization-based business model sustainability. We provide evidence that proxies for each of these types of insider information are positively associated with insider trading. Specifically, we find that net insider sales in the 2001Q2–2007Q2 pre-financial crisis quarters predict not-yet-reported non-performing securitized loans and securitization income for those quarters, and that net insider sales during 2006Q4 predict write-downs of securitization-related assets during the 2007Q3–2008Q4 crisis period. We find that net insider sales are more negatively associated with banks' subsequent stock returns in their securitization quarters than in other quarters. In supplemental analysis, we show that the above findings are driven by trades by banks' CEOs and CFOs, and that insiders avoid larger stock price losses through 10b5-1 plan sales than through non-plan sales. Data Availability: All data are available from public sources.
50
Horwich, Allan, e Crista M. Brawley. "Insider Trading in the Clinical Trial Setting". Indiana Health Law Review 20, n. 2 (14 giugno 2023): 199–255. http://dx.doi.org/10.18060/27435.
Testo completoAbstract (sommario):
The Securities and Exchange Commission’s enforcement agenda regularly includes charges of trading based on material nonpublic information about a clinical drug trial conducted to obtain FDA approval to market a new drug. Almost half of the recent cases have been accompanied by a criminal indictment. In an academic setting, researchers and those who advise them, unlike employees of public companies, are not generally given training about the risks of securities trading. Recent developments in the law might be applied in connection with clinical trial information in ways that would not have been foreseen until recently. It is time for a comprehensive analysis of how the law of insider trading may be applied to the important endeavor of clinical drug trials. Clinical trials should not be sullied by conflicts created by unlawful trading. This Article begins with the basic principles of insider trading, followed by a summary of how clinical trials are conducted and regulated. It then turns to the ways in which nonpublic information material to the stock price of the sponsor of the trial might be used to trade or tip. The analysis that follows identifies a number of situations where use or disclosure of material nonpublic information about a trial could be unlawful. Employees of sponsors of the trial, clinical investigators, and even the subjectsparticipating in a trial could run afoul of the prohibition on insider trading, such as when information has been used in breach of a confidentiality agreement or exchanged between an investigator and a trial participant, exchanged among trial participants, gleaned from attending medical conferences, and obtained in other settings specific to this industry. Presenting the full potential reach of the law facilitates taking steps to avoid violating the law. The analysis demonstrates that anyone involved in a clinical drug trial must be attuned to the risks of misusing material nonpublic information, including in scenarios not yet pursued by the SEC. By understanding the potential reach of the law, those involved in or who learn information about a specific trial can take steps to avoid or minimize the risk of liability. The Article concludes with recommendations to achieve this end. The Article thus presents a complete case study of an industry-specific application of insider trading law, with recommendations that can be applied to other industries.