Premium
Recent Canadian Experience on the Profitability of Insider Trades
Author(s) -
Lee Moon H.,
Bishara Halim
Publication year - 1989
Publication title -
financial review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.621
H-Index - 47
eISSN - 1540-6288
pISSN - 0732-8516
DOI - 10.1111/j.1540-6288.1989.tb00341.x
Subject(s) - insider , insider trading , profitability index , business , recession , stock (firearms) , monetary economics , stock market , financial system , finance , accounting , economics , political science , law , mechanical engineering , paleontology , horse , keynesian economics , biology , engineering
Recent Canadian data on large insider transactions showed that abnormal gains accrued to directors and bank directors during a stock market upturn. During a stock market downturn, beneficial owners, senior officers, and bank directors were compensated by more than the risk‐adjusted rates of return from sales of stocks of their own companies. Since Baesel and Stein's early study, abnormal gains persisted in spite of the introduction of stiffer penalties on insider trading.