TY - JOUR
T1 - The Effects of the Insider Trading Sanctions Act of 1984: The Case of Seasoned Equity Offerings
AU - Eyssell, Thomas H.
AU - Reburn, James P.
N1 - Thomas H. Eyssell and James P. Reburn Journal of Financial Research , 1993, vol. 16, issue 2, 161-170 Date: 1993 References: View references in EconPapers View complete reference list from CitEc Citations View citations in EconPapers (1) Track citations by RSS feed Downloads: (external link) http://hdl.handle.net/10.1111/j.1475-6803.1993.tb00137.x (text/html)Access to full text is restricted to subscribers.
PY - 1993/6/1
Y1 - 1993/6/1
N2 - Previous empirical research indicates that corporate insiders tend to increase (decrease) their shareholdings before events that increase (decrease) firm value. More recent evidence suggests, however, that passage of the Insider Trading Sanctions Act of 1984 (ITSA) may have deterred this behavior. Our results indicate that before passage of the ITSA, insiders exploited their access to nonpublic information by selling shares before the announcement of equity issues. However, after passage of the ITSA insiders no longer displayed this behavior. We conclude the ITSA has a deterrent effect, which is more heavily concentrated on insiders at the highest level of the firm who are most visible to regulators and other market participants.
AB - Previous empirical research indicates that corporate insiders tend to increase (decrease) their shareholdings before events that increase (decrease) firm value. More recent evidence suggests, however, that passage of the Insider Trading Sanctions Act of 1984 (ITSA) may have deterred this behavior. Our results indicate that before passage of the ITSA, insiders exploited their access to nonpublic information by selling shares before the announcement of equity issues. However, after passage of the ITSA insiders no longer displayed this behavior. We conclude the ITSA has a deterrent effect, which is more heavily concentrated on insiders at the highest level of the firm who are most visible to regulators and other market participants.
UR - https://econpapers.repec.org/article/blajfnres/v_3a16_3ay_3a1993_3ai_3a2_3ap_3a161-170.htm
U2 - 10.1111/j.1475-6803.1993.tb00137.x
DO - 10.1111/j.1475-6803.1993.tb00137.x
M3 - Article
VL - 16
JO - Journal of Financial Research
JF - Journal of Financial Research
ER -