Abstract
There is a long standing debate in the finance and law literatures about the need for insider trading regulation. Some scholars and practitioners argue that insider trading restrictions should be revoked because insider trading allows private information to be quickly incorporated into stock prices, thereby leading to more informationally efficient stock prices (Carlton and Fischel (1983); Dye (1984)). For example, Milton Friedman, laureate of the Nobel Memorial Prize in Economics, said: “You want more insider trading, not less. You want to give the people most likely to have knowledge about deficiencies of the company an incentive to make the public aware of that” (CNN interview, January 17, 2002).
Document Type
Article
Publication Date
2007
Publisher Statement
Copyright © 2007, ifo Institute – Leibniz Institute for Economic Research at the University of Munich, Munich.
The definitive version is available at: https://hdl.handle.net/10419/166896
Recommended Citation
Art A.; Nain, Amrita S. (2007) : The Effectiveness of Insider Trading Regulation: International Evidence, CESifo DICE Report. ifo Institut für Wirtschaftsforschung an der Universität München, München, Vol. 05, Iss. 1, pp. 10-15. https://hdl.handle.net/10419/166896
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