Insider Trading B-side: relevance, timeliness and position influence
Objective – Our main objective is to analyze the impacto f insider trading on stock investments’ decision. Design/methodology/approach – We used an online survey, obtaining 271 valid answers. To analyze our data, we used some parametric (t and F Anova), and non-parametric techniques (Mann-Whitne...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Fundação Escola de Comércio Álvares Penteado
2015-12-01
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| Series: | Revista Brasileira de Gestão De Negócios |
| Subjects: | |
| Online Access: | http://rbgn.fecap.br/RBGN/article/view/2347 |
| _version_ | 1831794964500054016 |
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| author | Luiz Felipe de A. Pontes Girão Orleans Silva Martins Edilson Paulo |
| author_facet | Luiz Felipe de A. Pontes Girão Orleans Silva Martins Edilson Paulo |
| author_sort | Luiz Felipe de A. Pontes Girão |
| collection | DOAJ |
| description | Objective – Our main objective is to analyze the impacto f insider trading on stock investments’ decision.
Design/methodology/approach – We used an online survey, obtaining 271 valid answers. To analyze our data, we used some parametric (t and F Anova), and non-parametric techniques (Mann-Whitney and Kruskal-Wallis).
Findings – We find that insider tradings are relevant to investment decisions, and the timeliness also exert an influence to this kind of decision, especially abnormal trades.
Practical implications – In practical terms, our results suggests that the Brazilian Securities and Exchange Commission (CVM) must update the Brazilian insider trading regulation to achieve the objective to protect investors. In the investors point of view, this possible update could improve investors’ ability to control insiders and follow his activities as well as to mimic his trades.
Originality/value – The originality of our paper is an analysis of relevance, timeliness and influence of position in a firm as “determinants” of investment decisions. We use these three specific characteristics to criticize the Brazilian insider trading regulation. |
| first_indexed | 2024-12-22T16:00:24Z |
| format | Article |
| id | doaj.art-09a3d9444e154c8cb8816b8e409872e2 |
| institution | Directory Open Access Journal |
| issn | 1806-4892 1983-0807 |
| language | English |
| last_indexed | 2024-12-22T16:00:24Z |
| publishDate | 2015-12-01 |
| publisher | Fundação Escola de Comércio Álvares Penteado |
| record_format | Article |
| series | Revista Brasileira de Gestão De Negócios |
| spelling | doaj.art-09a3d9444e154c8cb8816b8e409872e22022-12-21T18:20:42ZengFundação Escola de Comércio Álvares PenteadoRevista Brasileira de Gestão De Negócios1806-48921983-08072015-12-0117581341135610.7819/rbgn.v17i58.2347Insider Trading B-side: relevance, timeliness and position influenceLuiz Felipe de A. Pontes Girão0Orleans Silva Martins1Edilson Paulo2Department of Accounting and Finance, Universidade Federal da Paraíba, PB, BrazilDepartment of Accounting and Finance, Universidade Federal da Paraíba, PB, BrazilDepartment of Accounting and Finance, Universidade Federal da Paraíba, PB, BrazilObjective – Our main objective is to analyze the impacto f insider trading on stock investments’ decision. Design/methodology/approach – We used an online survey, obtaining 271 valid answers. To analyze our data, we used some parametric (t and F Anova), and non-parametric techniques (Mann-Whitney and Kruskal-Wallis). Findings – We find that insider tradings are relevant to investment decisions, and the timeliness also exert an influence to this kind of decision, especially abnormal trades. Practical implications – In practical terms, our results suggests that the Brazilian Securities and Exchange Commission (CVM) must update the Brazilian insider trading regulation to achieve the objective to protect investors. In the investors point of view, this possible update could improve investors’ ability to control insiders and follow his activities as well as to mimic his trades. Originality/value – The originality of our paper is an analysis of relevance, timeliness and influence of position in a firm as “determinants” of investment decisions. We use these three specific characteristics to criticize the Brazilian insider trading regulation.http://rbgn.fecap.br/RBGN/article/view/2347Capital Markets1Efficient Market Hyphotesis1Information asymmetry1 |
| spellingShingle | Luiz Felipe de A. Pontes Girão Orleans Silva Martins Edilson Paulo Insider Trading B-side: relevance, timeliness and position influence Revista Brasileira de Gestão De Negócios Capital Markets1 Efficient Market Hyphotesis1 Information asymmetry1 |
| title | Insider Trading B-side: relevance, timeliness and position influence |
| title_full | Insider Trading B-side: relevance, timeliness and position influence |
| title_fullStr | Insider Trading B-side: relevance, timeliness and position influence |
| title_full_unstemmed | Insider Trading B-side: relevance, timeliness and position influence |
| title_short | Insider Trading B-side: relevance, timeliness and position influence |
| title_sort | insider trading b side relevance timeliness and position influence |
| topic | Capital Markets1 Efficient Market Hyphotesis1 Information asymmetry1 |
| url | http://rbgn.fecap.br/RBGN/article/view/2347 |
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