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The Effects of Insider Trading Disclosures on Speculative Activity and Futures Prices, Economic Inquiry

Abstract

This paper explores a simple model of the effects of requiring public disclosure of insider trading activity in future markets. These disclosures are found to stimulate speculator activity and generate greater volatility, and lead to greater informational efficiency in the sense that futures prices are less biased predictors of future spot prices.

Type

Article

Author(s)

Ravi Jagannathan, Thomas R. Palfrey

Date Published

1989

Citations

Jagannathan, Ravi, and Thomas R. Palfrey. 1989. The Effects of Insider Trading Disclosures on Speculative Activity and Futures Prices. Economic Inquiry. 27(3): 411-430.

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