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This paper aims to gauge the issue of insider trading in Malaysia by assessing some selected statutory provisions under the relevant law and examining the issues of enforcement and prosecution.

The paper analyses relevant legislation pertaining to insider trading.

This paper argues that in order to be an effective regulation, the laws enacted must address the concerns and problems insider trading has given rise to. Contrary to popular impression that insider trading is a settled issue due to the lack of investigation and prosecution cases, the paper unearths a number of findings; first it maintains its contention that the provisions under the Companies Act 1965 are not entirely satisfactory and the latter regulations generally provide more creditable rules with regard to the issue. Further the definition of an insider, the requirement pertaining to the manner the information must be obtained and the enforcement of the law are amongst a number of issues that Malaysia has to address if a more competitive capital market is to be created.

Further research could usefully examine the law in the light of investigation cases by the security commission.

The paper reveals how insider trading legislation applies in business situations.

The insider trading legislation is found out to be far from satisfactory, and this paper attempts to fill in the gaps where there is scarcity of literature on this issue.

The purpose of this paper is to study the effectiveness of insider trading enforcement actions in India and international dimensions.

The research is based on the insider trading regulations and amendments made during the period 1992-2015.

The notable observation of the study is the dearth of insider trading conviction and the paucity of prosecution for insider trading offences in India. It is difficult to resist the conclusion that surveillance and enforcement matter more than the drafting of the relevant statutes and regulations in emerging markets. Whereas, developed countries have a better record of prosecution than emerging markets.

Future research may explore the factors that hinder effective regulation and recommend new methods to increase the impact of Securities and Exchange Board of India insider trading regulation.

The current paper presents guidance for the foreign institutional investors, regulators and market participants on insider trading regulation and prosecution in India.

Using data for actual insider trading cases prosecuted by the Securities and Exchange Commission, the paper aims to investigate whether insiders trade strategically to avoid detection.

The paper analyzes actual insider trades prior to price sensitive announcements.

It is found that insiders are more likely to trade on high volume days, which indicates an effort to hide their trades. Further, insider trading raises the number of days with abnormally high trading volume only slightly, again indicating that insiders are avoiding attracting attention. No evidence is found that insider trading intensity increases on the insider trading day closest to the announcement day. The hypothesis that index returns for insider trading days and non‐trading days are the same cannot be rejected, which is consistent with insiders avoiding detection. For stocks sold by insiders, returns are higher for insider trading days than for non‐insider trading days. Hence, insiders are selling on days when the market is up, which tends to hide their trading. But for stocks bought by insiders, returns are significantly higher on insider trading days than on non‐insider‐trading days, indicating that in this case insiders may attract unwanted attention.

The research may be useful to those attempting to detect insider trades.

This study aims to examine the deterrent effect of the Market Abuse Directive (MAD) introduced in the European Union in 2003. The purpose is to evaluate whether the Directive has resulted in significant changes in pre-bid stock price run-ups observed in mergers and acquisitions within the Portuguese, Spanish and Greek stock markets.

The study analyzes a sample of 199 mergers and acquisitions in the aforementioned stock markets. The magnitude of pre-bid stock price run-ups is investigated as an indicator of illegal insider trading. The effects of the MAD, toehold positions of bidders and industry similarity between firms involved in the deals are assessed using statistical analysis.

The study’s findings indicate that the MAD has been ineffective in deterring investors from trading on non-public information. Pre-announcement price run-ups remain significant, suggesting ongoing illegal insider trading practices. Additionally, the research reveals that pre-bid stock price run-ups tend to be lower when bidders have established a larger toehold position in the target and when the firms involved in the deal belong to the same industry.

This study contributes to the existing literature by providing empirical evidence on the ineffectiveness of the MAD in deterring illegal insider trading. The findings highlight the limitations of increasing penalties without an effective monitoring system in place. Furthermore, the study identifies additional factors, such as toehold positions and industry similarity, that influence the magnitude of pre-announcement price run-ups in mergers and acquisitions.

It is important to note that insider trading is currently outlawed under the Securities Act 17 of 2004 (Chapter 24: 25) as amended (Securities Act) in Zimbabwe. This Act enumerates some practices that may give rise to insider trading liability in the Zimbabwean financial markets. Nonetheless, numerous challenges, such as the lack of adequate financial resources, the lack of sufficient persons with the relevant skills and expertise on the part of the enforcement authorities, lack of political will, inadequacy of insider trading provisions, poor cooperation and collaboration between the relevant authorities and the ongoing coronavirus (Covid-19) pandemic have negatively impeded the effective regulation and combating of insider trading in Zimbabwe. To this end, the author explores the stated challenges and recommend measures that could be used by regulatory bodies and other relevant enforcement authorities to enhance the regulation and combating of insider trading in the Zimbabwean financial markets. This study aims to enhance the detection and combating of insider trading in Zimbabwe.

A qualitative research methodology is used through the analysis of relevant legislation and case law.

It is hoped that the findings and recommendations made in this study will be considered by the Zimbabwean policymakers.

The study does not use empirical research methodology.

The findings and recommendations made in this study could enhance the combating of insider trading activities in Zimbabwe.

The study seeks to curb insider trading in the Zimbabwean financial markets and financial institutions in the wake of the covid-19 pandemic-related regulatory and enforcement challenges.

The study provides original research on the regulation and combating of insider trading activities in Zimbabwe.

This study aims to investigate the impact of mandatory audit partner rotation (MAPR) on Chinese listed firms’ insider trading, as well as the moderating effects of firm characteristics on this impact. The economic mechanism behind this impact is also explored.

This study conducts a regression analysis on firms associated with mandatory and voluntary audit partner rotation based on 2009–2019 firm data and examines whether corporate insiders of these two types of firms increase their share sales within 12 months before their financial statements are submitted to a new rotated auditor.

Client firms’ corporate insiders increase their share sales within 12 months before their financial statements are submitted to a new mandatory rotated auditor. In addition, such an association is less pronounced for client firms that changed from Big 4 auditors to those with higher financial constraints. This is more pronounced for client firms with higher information asymmetry. The economic mechanism of the finding is that is the MAPR implementation reduces earnings management activities from client firms. Moreover, client firms’ buy-and-hold stock returns decline in the first year after MAPR.

This study should assist investors, corporate shareholders and Chinese policymakers. Investors can be well protected through the adoption of MAPR because upcoming auditors enhance the audit quality of clients by restraining managers’ manipulation of reported earnings and declining firms’ insider trading afterwards. Investors, Chinese policymakers and corporate shareholders should pay more attention to firms’ financial report quality, auditor selection, financial situation, corporate governance and the information environment. Explicitly, firms with less transparent financial report quality, non-big 4 auditors and fewer financial constraints are more likely to be involved in insider trading.

To the best of the authors’ knowledge, none of the extant studies have examined the impact of MAPR on insider sales. This study extends the research on the effect of the audit process on firm market performance by investigating the impact of audit partner rotation policy on insider trading behaviors.

This study aims to investigate the effect of perceived insider status to employees' innovative behavior, the mediating role of knowledge sharing and the moderating role of organizational innovation climate in the relationship between knowledge sharing and employees' innovative behavior.

This study adopted questionnaires to gather data. The sample of 341 employees working in diverse organizations in China was applied to examine the hypotheses.

The results indicate that perceived insider status is positively related to employees' innovative behavior and knowledge sharing mediates the relationship between perceived insider status and employees' innovative behavior. In addition, organizational innovation climate enhances the relationship of knowledge sharing and employees' innovative behavior.

This study builds a system from psychological aspect to behavior, which includes the mechanism of the influence of perceived insider status on employees' innovative behavior and a cross-level analysis of the influence of organizational innovation climate on employees' innovative behavior, breaking through the previous research paradigm of a single level of climate and employee behavior.

This article examines the implementation of the Insider Dealing Directive, the aim of which is European harmonisation in the UK and in Germany, two European countries with completely different backgrounds on this issue.

This paper aims to investigate the relative importance of audit-team and audit-firm attributes in perceptions of audit quality by two groups of users of audit services: audit committee chairs/members (“insiders”) and financial analysts/fund managers (“outsiders”).

Using a survey questionnaire, data are gathered from 39 audit committee chairs/members and 42 financial analysts/fund managers and analysed using adaptive conjoint analysis.

The findings reveal that both groups perceive audit-team attributes as relatively more important than audit-firm attributes. This is consistent with expectations for “insiders”, but inconsistent with expectations for “outsiders”. Differences are also found in the internal ratings of some of the attributes, with “insiders” and “outsiders” placing different relative importance on some attributes.

The usual set of limitations that are present in a survey method also apply in this study, i.e. surveys rely on reports of behaviours rather than observations and are therefore susceptible to measurement error. A further limitation is that, in using adaptive conjoint analysis, the number of attributes that may be included in the survey is restricted and, consequently, the attributes selected may not be comprehensive or fully representative.

The study extends the scope of prior studies by examining the relative importance of audit-team and audit-firm attributes in perceptions of audit quality. In using conjoint analysis, the study makes a unique and innovative contribution by providing direct evidence on the relative importance of attributes in perceptions of audit quality for different users of audit services. The findings have implications for regulators and the accounting profession concerned with improving confidence in corporates and for audit firms in monitoring and promoting the quality of their audit services.

This paper analyzes trading and tipping activities in insider trading litigation decided by federal courts from January 1, 2012 to December 31, 2014.

Legal documents from the US Securities and Exchange Commission, LexisNexis and Westlaw databases were coded to determine profile, patterns of trading and settlement outcomes.

Results of statistical analysis indicate that a defendant in both civil and criminal cases is more likely to trade on the information when he/she receives a direct, financial benefit from breaching his/her duty of confidentiality. The defendant tipper is also more likely to pass on the information to a close personal friend, business associate or family member. The average amount of profit of defendants in both civil and criminal proceedings substantially exceeds the average amount of their settlements.

This paper offers support for the rational choice model – insider trading is often based on rational calculations of benefits not only to the defendant but also to his/her family and associates. Although the threat of civil enforcement and criminal proceedings may possibly deter him/her from committing the crime, results indicate that the amounts of settlement in both proceedings are considerably lower than the amount of profits obtained from the offense.