Author : Mr.Julan Du
Publisher : International Monetary Fund
ISBN 13 : 1451847130
Total Pages : 43 pages
Book Rating : 4.4/5 (518 download)
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.