The Economic Cost of Insider Trading - Culture, Legislation, Governance, Gender and Crisis Impacts: Comparative Evidence from around the Globe (2013–2015)

Abstract:
Insiders have intimate knowledge about their firm's operations. We undertake new international research examining the comparative economic cost of insider trading in legislative cultures across Africa, Asia, Australia, Europe and the US. Cost analysis is extended beyond traditional methods to measuring trading costs through the decomposition of bid-ask spreads and trading volatility. Analysis is further conditioned by country and firm governance, uninformed insiders, director position and gender, accounting information inputs, downside risk (the GFC), and the degree of outside investor attention. Results will inform on international best practice that increases information flow but reduces excess rent extraction by insiders.
Grant type:
ARC Discovery Projects
Researchers:
Funded by:
Australian Research Council