Theoretical Profiles for the Evaluation of Insider Trading in a Functional Model of Financial Instruments Market
| Autor: | Paola Fandella |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
financial
business.industry Transparency (market) Financial instrument market 05 social sciences Financial market trading Microeconomics Settore SECS-P/11 - ECONOMIA DEGLI INTERMEDIARI FINANZIARI Information asymmetry insider 0502 economics and business 050211 marketing Insider trading business Inefficiency Capital market 050203 business & management Risk management |
| Zdroj: | International Journal of Business Administration. 9:1 |
| ISSN: | 1923-4015 1923-4007 |
| DOI: | 10.5430/ijba.v9n1p1 |
| Popis: | The analysis is based on the premise that the capital market is characterized by weak forms of risk management, to be intended, in this case, as risk of information asymmetry as well as operational inefficiency, as there are no hedging schemes to prevent external actions and internal mechanisms are not inspired by adequate transparency principles.After a critical review of the theoretical effects of insider trading, starting with a market equilibrium assessment, this analysis seeks to demonstrate the absence of any positive effect linked to insider trading in relation to any type of variable and for any model of the securities market.Starting from the assumption that the negative trading activity of insiders manifests in any securities market structure, it has been shown that an operating model characterized by the presence of professional operators appears to be more capable of opposing a significant barrier to the entry of insiders.On the other hand, it has also been shown that the presence of professional operators cannot act alone and it may also lose action incisiveness and even cause informative viscosity effect, when such professional or institutional operators are directly involved in privatization operations. |
| Databáze: | OpenAIRE |
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