Can Regulation of Insider Trading Be Effective?
While there is a very prolific literature showing that the regulation of insider trading is by and large ineffective when it comes to discourage individuals from trading on non-public information, almost no work has been done on whether insider trading regulation can be effective. This paper attempts to fill that gap by investigating whether the regulation of insider trading can be effective. First, we show why insider trading regulation cannot be effective. Second, we see to what extend the empirical studies are consistent with our analysis.
Economics | Law and Economics | Securities Law
Date of this Version
Alexandre Padilla, "Can Regulation of Insider Trading Be Effective?" (June 22, 2005). bepress Legal Series. bepress Legal Series.Working Paper 654.