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Revista Brasileira de Gestão de Negócios

Print version ISSN 1983-0807On-line version ISSN 1806-4892

Abstract

GIRAO, Luiz Felipe de Araújo Pontes; MARTINS, Orleans Silva  and  PAULO, Edilson. Insider Trading B-side: relevance, timeliness and position influence. Rev. bras. gest. neg. [online]. 2015, vol.17, n.58, pp.1341-1356. ISSN 1983-0807.  https://doi.org/10.7819/rbgn.v17i58.2347.

Objective:

Our main objective is to analyze the impacto f insider trading on stock investments’ decision.

Design/methodology/approach:

We used an online survey, obtaining 271 valid answers. To analyze our data, we used some parametric (t and F Anova), and non-parametric techniques (Mann-Whitney and Kruskal-Wallis).

Findings:

We find that insider tradings are relevant to investment decisions, and the timeliness also exert an influence to this kind of decision, especially abnormal trades.

Practical implications:

In practical terms, our results suggests that the Brazilian Securities and Exchange Commission (CVM) must update the Brazilian insider trading regulation to achieve the objective to protect investors. In the investors point of view, this possible update could improve investors’ ability to control insiders and follow his activities as well as to mimic his trades.

Originality/value:

The originality of our paper is an analysis of relevance, timeliness and influence of position in a firm as “determinants” of investment decisions. We use these three specific characteristics to criticize the Brazilian insider trading regulation.

Keywords : Capital Markets; Efficient Market Hyphotesis; Information asymmetry.

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