Insider trading properties affect on information asymmetry
Summary
Previous research finds conflicting evidence for the effect of insider trading on an efficient
stock market. It could be a tool for insiders to signal the performance of the company or a tool
to make easy money off outsiders. In this paper we will try to identify which characteristics of
the inside trade has the most effect on the stock market efficiency to help policy makers create
effective regulations. This paper examines the effect of insider trading on the cumulative
abnormal returns (CAR) and information asymmetry exchange trades shares. It does so with
a simple OLS regression where the position of an insider within the firm and the volume traded
by the insider is regressed on the bid-ask spread and the CAR. The regression finds no
significant effect of position or volume on the CAR neither on the bid-ask spread. This
contradicts previous research and shows further research on this topic is necessary
Collections
Related items
Showing items related by title, author, creator and subject.
-
The Truth Is Out There: The Belief in and Spread of the 5G-COVID-19 Conspiracy Theory on Reddit as an Expression of Opposing Agency Inside a Heterotopia
Starre, M. van der (2021)This thesis centers around the circulation of the conspiracy theory on Reddit that suggests a connection between COVID-19 and 5G radiation. Research on this phenomenon in the past, has often had a focus on either the ... -
Inside the Hidden World of Homeless Women: Experiences of Belonging through Care Practices among Homeless Women in Eindhoven
Scholts, Kim (2022)Women make up a relatively small part of the homeless population people in Eindhoven, due to which they partly remain more hidden in academic research than their male counterparts. The purpose of this research is to shine ... -
Hyporheic exchange inside a flat gravel bed, flume experiments and modelling.
Slager, A.A. (2014)The aim of this research is to gain more understanding on the parameters that affect hyporheic exchange. Hyporheic exchange is a diverse process, in which many different parameters affect the hyporheic flow paths and ...