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The Relationship between Two Indicators of Insider Trading in British Racetrack Betting
Author(s) -
Cain Michael,
Law David,
Peel David
Publication year - 2001
Publication title -
economica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.532
H-Index - 65
eISSN - 1468-0335
pISSN - 0013-0427
DOI - 10.1111/1468-0335.00235
Subject(s) - insider trading , odds , insider , race (biology) , financial economics , horse racing , econometrics , economics , business , actuarial science , statistics , mathematics , finance , logistic regression , political science , sociology , law , gender studies
This paper examines whether a measure of insider trading in betting markets derived from the Shin (1993) model is significantly related in samples of horse and greyhound races to an alternative, independently derived, indicator of insider activity suggested by Crafts (1985), namely plunges in the odds offered against a particular competitor on the day of a race. The analysis suggests that there is a significant relationship.