Open AccessJust How Serious is Insider Trading? An evaluation using thoroughbred wagering markets
Author(s) -
Les Coleman
Publication year - 2013
Publication title -
the journal of gambling business and economics
Language(s) - English
Resource type - Journals
eISSN - 1751-8008
pISSN - 1751-7990
DOI - 10.5750/jgbe.v1i1.508
Subject(s) - insider trading , insider , business , financial market , financial economics , economics , monetary economics , finance , political science , law
This paper quantifies the extent and changes in insider trading in the Melbourne racetrack betting market using a unique, long term dataset. Wagering markets share many of the characteristics of other financial markets, and are simple, with good data and a designated endpoint. Thus they are an excellent natural laboratory to study what is probably happening in qualitatively similar conventional markets. Results of this paper provide statistically significant support for hypotheses supporting the existence and increase in level of insider trading, and suggest that around two percent of betting is by insiders.