The real effect of the initial enforcement of insider trading laws

• المؤلفون الرئيسيون: CHEN, Zhihong, HUANG, Yan, KUSNADI, Yuanto, JOHN WEI, K. C.
• التنسيق: text
• اللغة: English
• منشور في: Institutional Knowledge at Singapore Management University 2017
• الموضوعات: Enforcement; Insider trading laws; Investment; Managerial learning; Market frictions; Real effect; Accounting; Portfolio and Security Analysis
• الوصول للمادة أونلاين: https://ink.library.smu.edu.sg/soa_research/1140; https://ink.library.smu.edu.sg/context/soa_research/article/2139/viewcontent/Real_effect_of_the_initial_enforcement_of_insider_trading_law_av.pdf
• المؤسسة: Singapore Management University

Based on a difference-in-differences approach, we find strong evidence that the initial enforcement of insider trading laws improves capital allocation efficiency. The effect is concentrated in developed markets and manifests shortly after the enforcement year. Further analysis shows that the improv...