Share trading by corporate insiders: effects and implications (ARC Discovery Project administered by the University of Western Australia)

Abstract:: Well-functioning markets require effective and efficient operations. Investor confidence is achieved through timely and relevant information disclosure. It is eroded when insiders fail to disclose their trading, as required by legislation. We develop a measure of undisclosed insider trading in Australian firms and examine its effect on governance, firm performance and cost of capital. This project extends our understanding of the incentives for and implications of both disclosed and undisclosed insider trading. Our findings will inform the corporate regulator¿s task of ensuring market confidence, transparency and a level playing field for all investors.
Grant type:: University of Western Australia
Funded by:: The University of Western Australia

The University of Queensland