ECMI paper on ‘Insider Trading, Abnormal Return and Preferential Information’

15 September 2003

The enforcement of the ban on insider trading requires an evaluation of the disgorgement. An initial step forward on this topic has been taken by the SEC which has developed a quantitative procedure based on the event-study methodology.

This paper develops an adaptation of this procedure for the Italian market and explains the limits of these methodologies in the analysis of the insider-trading phenomenon.

Paper

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