References (44)


Citations (235)



The World Price of Insider Trading

Utpal Bhattacharya

HKUST Business School

Hazem Daouk

Cornell University - School of Applied Economics and Management

Journal of Finance, February 2002

The existence and the enforcement of insider trading laws in stock markets is a phenomenon of the 1990s. A study of the 103 countries that have stock markets reveals that insider trading laws exist in 87 of them, but enforcement - as evidenced by prosecutions - has taken place in only 38 of them. Before 1990, the respective numbers were 34 and 9.

Does this matter? We find that the cost of equity in a country, after controlling for a number of other variables, does not change after the introduction of insider trading laws, but decreases significantly after the first prosecution.

Number of Pages in PDF File: 47

Keywords: Insider trading, cost of equity, international finance

JEL Classification: G14, G15

Accepted Paper Series

Download This Paper

Date posted: December 22, 2000  

Suggested Citation

Bhattacharya , Utpal and Daouk, Hazem, The World Price of Insider Trading. Journal of Finance, February 2002. Available at SSRN: http://ssrn.com/abstract=249708

Contact Information

Utpal Bhattacharya (Contact Author)
HKUST Business School ( email )
Clear Water Bay
Hong Kong
Hazem Daouk
Cornell University - School of Applied Economics and Management ( email )
446 Warren Hall
Ithaca, NY 14853
United States
331-45-78-63-88 (Fax)
HOME PAGE: http://courses.cit.cornell.edu/hd35/
Feedback to SSRN

Paper statistics
Abstract Views: 16,293
Downloads: 6,269
Download Rank: 474
References:  44
Citations:  235

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.328 seconds