Insider Trading and the Bid-Ask Spread

@article{Chung1998InsiderTA,
  title={Insider Trading and the Bid-Ask Spread},
  author={K. Chung and C. Charoenwong},
  journal={The Financial Review},
  year={1998},
  volume={33},
  pages={1-20}
}
  • K. Chung, C. Charoenwong
  • Published 1998
  • Business
  • The Financial Review
  • This study examines the intertemporal and cross-sectional association between the bid-ask spread and insider trading. Empirical results from the cross-sectional regression analysis reveal that market makers establish larger spreads for stocks with a greater extent of insider trading. The time-series regression analysis, however, finds no evidence of spread changes on insider trading days. These results suggest that although market makers may not be able to detect insider trading when it occurs… CONTINUE READING
    107 Citations
    The Impact Of Insider Trading On Market Liquidity In The NASDAQ Market
    • 5
    • Highly Influenced
    • PDF
    Does market maker competition affect the response to insider trading?
    • 4
    • Highly Influenced
    INSIDER TRADING, REGULATION, AND THE COMPONENTS OF THE BID–ASK SPREAD
    • 36
    • PDF
    The Effects of Insider Trading on Liquidity
    • 47
    • PDF
    Insider trading, NASDAQ quotes, and market maker competition
    • Highly Influenced
    Legal Insider Trading and Stock Market Liquidity
    • 2
    • PDF
    Insider Trading in Credit Derivatives Viral
    • PDF
    Foreign Ownership and Stock Market Liquidity
    • 6
    • PDF

    References

    SHOWING 1-10 OF 26 REFERENCES