Illegal Insider Trading and Corporate Ownership Structure: The Efficiency of the Acquisitions Markets and the Exploitation of Information Asymmetry in the Context of Corporate Ownership Structure
This study tries to identify the relationship between corporate ownership structure and the likelihood of insider trading. The findings are quite remarkable as they do confirm the proposed hypotheses, through a series of statistically significant results. Right from the outset of this project the intent was to identify the leading causes of one of the most detrimental phenomenon that has plagued the corporate finance landscape, pretty much ever since equity stock was employed as a form of ownership. Beyond the conducive conditions created by the lack of implementation of a proper level of corporate governance, the Insider Trading event is ultimately the result of human nature and two elemental human emotions, fear and greed. These two fundamental emotions symbolize the underpinning of the capital markets. Without such feelings, the markets will never see tremendous highs accompanied by irrational exuberance, but neither will they see abysmal lows marked by incredible levels of pessimism and outright depression.