In the Insider Trading & Market Manipulation Literature Watch, members of our Finance Practice provide summaries and links to published research about insider trading and market manipulation. The team provides an update each quarter.
The authors’ own abstracts are included in the newsletter and are unedited. Links to the full paper are provided. The inclusion of a paper in this newsletter does not signify that CRA or any of its experts agree or disagree with the content or conclusions therein.
In our Q4 2022 edition, we include an analysis of the consequences of shadow trading on corporate investment decisions; a paper on insider-trading regulations focusing on two recent proposals on advance disclosure and “cooling-off” periods; a paper investigating the impact of insider trading and managerial attributes as determinants of future stock price crashes, including gender diversity, CEO age, and CEO power (measured by CEO pay disparity, CEO tenure, and CEO duality); a study of the voluntary disclosure decision of activist speculators; a study of the impact of price on high-frequency trade order spoofing; and a study that assesses the ability of the EU anti-manipulation law and enforcement regime to achieve credible deterrence on the new and emerging risks of AI-driven market manipulation.