The impact of regulations on the informational basis of insider trading

dc.contributor.author	Gilbert, A
dc.contributor.author	Tourani-Rad, A
dc.date.accessioned	2011-02-21T02:49:18Z
dc.date.available	2011-02-21T02:49:18Z
dc.date.copyright	2006
dc.date.created	2006
dc.date.issued	2006
dc.description.abstract	While insider trading has been regulated in the vast majority of countries with financial markets, the efficacy of these regulations has only been sparsely examined. In this paper we examine the impact of major regulatory changes in New Zealand on the profitability and informational basis of insider transactions. We conclude that the law changes have both significantly reduced the profitability of insider trading and forced insiders to change the source of the information they use from private information to knowledge of market misvaluation. The results show that well constructed insider trading laws can be effective in controlling insider behaviour and profitability.
dc.identifier.other	27-2006
dc.identifier.uri	https://hdl.handle.net/10292/1145
dc.publisher	AUT Faculty of Business
dc.relation.uri	http://www.aut.ac.nz/__data/assets/pdf_file/0010/48484/enterprise_and_innovation_27-2006.pdf
dc.rights	2006 © - Copyright of the Author(s)
dc.rights.accessrights	OpenAccess
dc.source	Enterprise and Innovation, 2006, 27
dc.subject	Insider Trading
dc.subject	Securities Regulation
dc.subject	Private Information
dc.subject	Market Mispricing
dc.title	The impact of regulations on the informational basis of insider trading
dc.type	Working Paper

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