Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
Does Insider Trading Raise Market Volatility
Download Does Insider Trading Raise Market Volatility full books in PDF, epub, and Kindle. Read online Does Insider Trading Raise Market Volatility ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Book Synopsis Does Insider Trading Raise Market Volatility? by : Mr.Julan Du
Download or read book Does Insider Trading Raise Market Volatility? written by Mr.Julan Du and published by International Monetary Fund. This book was released on 2003-03-01 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies the role of insider trading in explaining cross-country differences in stock market volatility. The central finding is that countries with more prevalent insider trading have more volatile stock markets, even after one controls for liquidity/maturity of the market and the volatility of the underlying fundamentals (volatility of real output and of monetary and fiscal policies). Moreover, the effect of insider trading is quantitively significant when compared with the effect of economic fundamentals.
Book Synopsis Is the Increase in Insider Information Confusing the Markets? by : Jodie Wade McGaughey
Download or read book Is the Increase in Insider Information Confusing the Markets? written by Jodie Wade McGaughey and published by . This book was released on 2015 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt: "To combat the asymmetry between insider information and investor information, the Sarbanes-Oxley Act of 2002 (SOX) (2006) introduced a full disclosure regulation requiring more frequent insider voluntary earnings disclosures. Managers issue Securities and Exchange Commission 8-K filings to comply with Reg. FD and SOX requirements. Regulatory compliance requirements cause managers to release much more frequent 8-K voluntary earnings disclosures (VEDs). Managers can potentially use VEDs to create volatility for their own and institutional shareholders benefits (Das, Shroff, & Zhang, 2009; Gu & Li, 2007). This study examines the market volatility surrounding VEDs. The study determines if managers self-servingly use VEDs to attract institutional investors. The study also demonstrates managers can use VEDs to create periods of arbitrage. The study examines for arbitrage, since arbitrage theories support the price mean reversion theory of price predictability and the behavioral finance theories of investor over-reliance on insider information, investor momentum, investor habits, and quantitative trading. The study uses the directional move index to measure market volatility and the percentage of transient institutional investors (TII) ownership to measure TII attractiveness. In the study, the days around the VED represent an event period. The study uses the event study method to measure the difference between the directional move indexes (DMI) during the event periods versus the same indices for the non-event periods leading up to the events. The study also uses the DMI as a standalone event without comparison to non-event periods. The study regresses the number of VEDs in a quarter against the DMI to measure if the VEDs predict a firm's average volatility. To measure if VEDs attract TII, the study regresses the quarterly change in the percentage of TII ownership against the number of VEDs a company releases. For the period 2007 through 2012, the study uses the S&P 500 companies' quarterly 8-K reports, TII percentage ownership changes, and daily market prices (used to calculate the DMI) as the test data. The study finds that market price volatility does exist during the VED event periods. The market price volatility indicates managers are using VEDs to manage earnings and as a consequence to degrade investor pricing decisions. The length of the volatility events supports managers' ability to create non-equilibrium pricing moments that benefit insider trades. However, TII do not see VEDs as an attractant for investment in a firm and TII avoid investing in companies issuing above average numbers of VEDs." -- Page [iv].
Download or read book Insider Trading written by Paul U. Ali and published by CRC Press. This book was released on 2008-08-22 with total page 452 pages. Available in PDF, EPUB and Kindle. Book excerpt: Insider trading has long been considered an endemic feature of the world's financial markets. It is unsurprising that the recent growth in mergers and acquisitions worldwide has been accompanied by a growth in insider trading, on a scale not witnessed since the 1980's takeovers boom. Insider Trading: Global Developments and Analysis brings together the latest law and finance research on insider trading. It provides expert coverage on the established US, European, and Asia-Pacific securities markets, as well as the key emerging markets of Brazil and the greater China region. Providing high interest and up-to-date content, the book features several recent cases, including that of Martha Stewart.
Book Synopsis Insider Trading, Stock Return Volatility, and the Option Market's Pricing of the Information Content of Insider Trading by : Chin-Han Chiang
Download or read book Insider Trading, Stock Return Volatility, and the Option Market's Pricing of the Information Content of Insider Trading written by Chin-Han Chiang and published by . This book was released on 2016 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: We find strong evidence that net insider selling is positively associated with future stock return volatility, consistent with insider selling increasing outside investors' uncertainty. The positive effect of net insider selling is significantly stronger when the volatility is measured around the earnings announcement. Apparently, option prices do not fully reflect the information content of insider trading for future volatility. More specifically, we find no evidence that option traders adjust the implied volatility for the insider trading effect in a timely manner. Consequently, net insider selling is significantly associated with future option straddle returns and delta neutral returns.
Book Synopsis Research Handbook on Insider Trading by : Stephen M. Bainbridge
Download or read book Research Handbook on Insider Trading written by Stephen M. Bainbridge and published by Edward Elgar Publishing. This book was released on 2013-01-01 with total page 498 pages. Available in PDF, EPUB and Kindle. Book excerpt: In most capital markets, insider trading is the most common violation of securities law. It is also the most well known, inspiring countless movie plots and attracting scholars with a broad range of backgrounds and interests, from pure legal doctrine to empirical analysis to complex economic theory. This volume brings together original cutting-edge research in these and other areas written by leading experts in insider trading law and economics. The Handbook begins with a section devoted to legal issues surrounding the USÕs ban on insider trading, which is one of the oldest and most energetically enforced in the world. Using this section as a foundation, contributors go on to discuss several specific court cases as well as important developments in empirical research on the subject. The Handbook concludes with a section devoted to international perspectives, providing insight into insider trading laws in China, Japan, Australia, New Zealand, the United Kingdom and the European Union. This timely and comprehensive volume will appeal to students and professors of law and economics, as well as scholars, researchers and practitioners with an interest in insider trading.
Book Synopsis Insider Trading, Volatility of Stock Price and Information Asymmetry by : Yongdong Shi
Download or read book Insider Trading, Volatility of Stock Price and Information Asymmetry written by Yongdong Shi and published by . This book was released on 2004 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: With the samples of stocks which has experienced insider trading in Chinese security market, this article analysis the current characteristics of the insider trading in Chinese security market. It makes empirical description of the insider trading in the follows: the effect of insider trading on the stock price, the abnormal return or disgorgement of insider traders, the impact of insider trading on the information asymmetry in trading. At the last, we develop the policy suggestions against the insider trading.
Book Synopsis Investment Intelligence from Insider Trading by : H. Nejat Seyhun
Download or read book Investment Intelligence from Insider Trading written by H. Nejat Seyhun and published by MIT Press. This book was released on 2000-02-28 with total page 452 pages. Available in PDF, EPUB and Kindle. Book excerpt: Learn how to profit from information about insider trading. The term insider trading refers to the stock transactions of the officers, directors, and large shareholders of a firm. Many investors believe that corporate insiders, informed about their firms' prospects, buy and sell their own firm's stock at favorable times, reaping significant profits. Given the extra costs and risks of an active trading strategy, the key question for stock market investors is whether the publicly available insider-trading information can help them to outperform a simple passive index fund. Basing his insights on an exhaustive data set that captures information on all reported insider trading in all publicly held firms over the past twenty-one years—over one million transactions!—H. Nejat Seyhun shows how investors can use insider information to their advantage. He documents the magnitude and duration of the stock price movements following insider trading, determinants of insiders' profits, and the risks associated with imitating insider trading. He looks at the likely performance of individual firms and of the overall stock market, and compares the value of what one can learn from insider trading with commonly used measures of value such as price-earnings ratio, book-to-market ratio, and dividend yield.
Book Synopsis Aggregate Insider Trading and Stock Market Volatility in the UK by : Guglielmo Maria Caporale
Download or read book Aggregate Insider Trading and Stock Market Volatility in the UK written by Guglielmo Maria Caporale and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the relationship between aggregate insider trading (AIT) and stock market volatility using monthly data on insider transactions by UK executives in public limited companies for the period January 2002 - December 2020. More specifically, a Vector Autoregression (VAR) model is estimated and Impulse Response analysis as well as Forecast Error Variance Decomposition are carried out. The main finding is that higher AIT (more specifically, insider purchases) leads to a short-run increase in stock market volatility; this can be attributed to a combination of insiders manipulating the timing and content of the information they release and the revelation of new economy-wide information to the market. The UK being a well-regulated market, it is plausible that the main driver of the increase in stock market volatility should be the information effect. These results are shown to be robust to using alternative (direct) measures of AIT.
Book Synopsis Portfolio Preferences of Foreign Institutional Investors by : Reena Aggarwal
Download or read book Portfolio Preferences of Foreign Institutional Investors written by Reena Aggarwal and published by World Bank Publications. This book was released on 2003 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Insider Trading and the Bid-Ask Spread by : Stanislav Dolgopolov
Download or read book Insider Trading and the Bid-Ask Spread written by Stanislav Dolgopolov and published by . This book was released on 2006 with total page 98 pages. Available in PDF, EPUB and Kindle. Book excerpt: In economic, finance, and legal literature, there is a widespread acceptance of the notion that market makers increase the bid-ask spread in response to insider trading, as they consistently lose money by transacting with better-informed insiders. The development of this adverse selection model of market making was treated as proof that insider trading imposes a real cost on securities markets by decreasing liquidity and increasing the corporate cost of capital and was used as a justification for regulation. This Article is a critical review of the adverse selection literature. It discusses the model's theoretical development, its use in the regulation debates, a summary of the case law on the harm from insider trading to market makers, and empirical research on the link between insider trading and transaction costs. The adverse selection argument is criticized from both theoretical and empirical standpoints: there are limitations to the model due to required assumptions about the role and behavior of market makers' inventories; different causal links among insider trading, firm size, quality of disclosure, stock price volatility, and the bid-ask spread are possible; the existing empirical studies may confuse various components of the spread; and information asymmetry may actually benefit market makers.
Book Synopsis Insider Trading, Stochastic Liquidity and Equilibrium Prices by : Pierre Collin-Dufresne
Download or read book Insider Trading, Stochastic Liquidity and Equilibrium Prices written by Pierre Collin-Dufresne and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We extend Kyle's (1985) model of insider trading to the case where liquidity provided by noise traders follows a general stochastic process. Even though the level of noise trading volatility is observable, in equilibrium, measured price impact is stochastic. If noise trading volatility is mean-reverting, then the equilibrium price follows a multivariate 'stochastic bridge' process, which displays stochastic volatility. This is because insiders choose to optimally wait to trade more aggressively when noise trading activity is higher. In equilibrium, market makers anticipate this, and adjust prices accordingly. More private information is revealed when volatility is higher. In time series, insiders trade more aggressively, when measured price impact is lower. Therefore, execution costs to uninformed traders can be higher when price impact is lower.
Book Synopsis Liquidity, Markets and Trading in Action by : Deniz Ozenbas
Download or read book Liquidity, Markets and Trading in Action written by Deniz Ozenbas and published by Springer Nature. This book was released on 2022 with total page 111 pages. Available in PDF, EPUB and Kindle. Book excerpt: This open access book addresses four standard business school subjects: microeconomics, macroeconomics, finance and information systems as they relate to trading, liquidity, and market structure. It provides a detailed examination of the impact of trading costs and other impediments of trading that the authors call rictions It also presents an interactive simulation model of equity market trading, TraderEx, that enables students to implement trading decisions in different market scenarios and structures. Addressing these topics shines a bright light on how a real-world financial market operates, and the simulation provides students with an experiential learning opportunity that is informative and fun. Each of the chapters is designed so that it can be used as a stand-alone module in an existing economics, finance, or information science course. Instructor resources such as discussion questions, Powerpoint slides and TraderEx exercises are available online.
Book Synopsis Insider Trading and the Stock Market by : Henry G. Manne
Download or read book Insider Trading and the Stock Market written by Henry G. Manne and published by . This book was released on 1966 with total page 296 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Insider Trading and Stock Volatility by : Tsz-Wa Tam
Download or read book Insider Trading and Stock Volatility written by Tsz-Wa Tam and published by . This book was released on 2004 with total page 362 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Relative Idiosyncratic Volatility and the Timing of Corporate Insider Trading by : Jasmin Gider
Download or read book Relative Idiosyncratic Volatility and the Timing of Corporate Insider Trading written by Jasmin Gider and published by . This book was released on 2016 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates whether corporate insiders trade when asymmetric information is high, using data on U.S. corporate insider transactions between 1986 and 2012. The key innovation of this paper is our proxy for asymmetric information relivol which measures deviations of idiosyncratic volatility from a firm's normal level. Our findings indicate that relivol positively predicts insider purchases, which indicates that insiders buy shares when their informational advantage is high. However, insiders appear to sell less if relivol is high, which is consistent with existing evidence on sales being driven by alternative, non-information related trading motives such as liquidity or diversification needs. Further, we find that profits are significantly higher when insiders buy during periods of high relivol, but not when they sell shares.
Book Synopsis Beast on Wall Street by : Robert A. Haugen
Download or read book Beast on Wall Street written by Robert A. Haugen and published by Pearson. This book was released on 1999 with total page 170 pages. Available in PDF, EPUB and Kindle. Book excerpt: It is now abundantly clear that stock volatility is a contagious disease that spreads virulently from market to market around the world. Price changes in one market drive subsequent price changes in that market as well as in others. In Beast, Haugen makes a compelling case for the fact that even under normal conditions, fully 80 percent of stock volatility is price driven. Moreover, this volatility is far from benign. It acts to reduce the level of investment spending and constitutes a significant and permanent drag on economic growth. Price-driven volatility is unstable. Dramatic and unpredictable explosions in price-driven volatility can send stock markets in a downward spiral and cause significant disruptions in economic activity. Haugen argues that this indeed happened in 1929 and 1930. If volatility in Asian markets persists, it can easily become the source of the problem rather than merely a symptom.
Book Synopsis Insider Trading and Market Manipulation by : Janet Austin
Download or read book Insider Trading and Market Manipulation written by Janet Austin and published by Edward Elgar Publishing. This book was released on 2017-12-29 with total page 286 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book explores how the globalization of securities markets has affected market manipulation and insider trading. It delves into the responses of securities regulators, discussing new regulations designed to deter such misconduct, as well as they ways in which detection, investigation and prosecution techniques are adapting to tackle insider trading and market manipulation that crosses international boundaries.
