Casino Capitalism? Insider Trading in Australia - Background

Abstract:     
This empirical research project asked whether insider trading was a serious problem in Australia. Market observers had reported that it was often seen as such, especially during bull markets. According to some financial advisers, "in terms of its frequency, insider trading is a small matter but it has the potential to destroy the market". According to others, a link was seen to exist between takeovers and insider trading. This research sought to explore these questions. The researchers interviewed regulators, brokers, merchant bankers, partners in law firms, financial advisers, financial journalists, and many others who offered their perceptions of the incidence of insider trading and commented on the effectiveness of regulation in the Australian securities industry. The findings of Federal Government inquiries and the new insider trading legislation are also examined closely. Case law is discussed in detail and comparisons are drawn with the securities industry and securities legislation in the United Kingdom and the United States of America. The findings from this research are more fully reported by Roman Tomasic and Brendan Pentony in Casino capitalism? Insider trading in Australia.

Number of Pages in PDF File: 5

Keywords: Insider Trading,Extent and Impact, Enforcement, Empirical research, Australia,

JEL Classification: K22, K42

Accepted Paper Series