In insider trading, all lawbreakers do not benefit to the same degree.
Insider trading is most profitable – and the cases are most numerous – when the occur as a result of personal, not professional, relationships. This is the conclusion of a new study, “Information Networks: Evidence from Illegal Insider Trading Tips,” by Kenneth R. Ahern from the University of Southern California, Marshall School of Business.
Profits generated by insider trading
Ahern finds that the insider profits generated typically resulted a 35 percent return on investment over a 21 day holding period, as Ahern clusters insider traders based on age, occupation, gender and location.
Ahern starts the paper by telling a common story that supports his thesis that the majority of Setup a free account to get access to this article (no credit card required).Login required to continue reading.
