New evidence on the effects of federal regulations on insider trading : The Insider Trading and Securities Fraud Enforcement Act ( ITSFEA )

@inproceedings{Garfinkel2002NewEO,
  title={New evidence on the effects of federal regulations on insider trading : The Insider Trading and Securities Fraud Enforcement Act ( ITSFEA )},
  author={Jon A. Garfinkel},
  year={2002}
}
This paper finds new evidence that the threat of legal sanctions significantly affects the trading behavior of insiders. Specifically, I examine the effects of the Insider Trading and Securities Fraud Enforcement Act (ITSFEA) on insider trading around earnings announcements. Given ITSFEA's stated concern with trading on private information prior to its release, I argue that insiders may respond to the Act by altering the timing of their trades. I find that, following ITSFEA, insiders are more… CONTINUE READING
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