The real effect of the initial enforcement of insider trading laws

• Main Authors: CHEN, Zhihong, HUANG, Yan, KUSNADI, Yuanto, JOHN WEI, K. C.
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2017
• 主題: Enforcement; Insider trading laws; Investment; Managerial learning; Market frictions; Real effect; Accounting; Portfolio and Security Analysis
• 在線閱讀: 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

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...