Management and Organizational Studies Publications

Document Type

Article

Publication Date

3-28-2017

Volume

19

Journal

Information Systems Frontiers

First Page

457

URL with Digital Object Identifier

DOI 10.1007/s10796-017-9753-3

Last Page

467

Abstract

Detecting the incidence and impact of illegal insider trading is a difficult process since access to the actual trading records of insiders that overlap precisely with fraudulent events is difficult. This paper provides a case study of a specific IT stock in Canada that was successfully prosecuted in the Canadian court system for market manipulation and illegal insider trading violations. The study provides a quantification of the impact of insider trading activities by the President directly through his own account or through accounts under his control, and illustrates the impact of some off-exchange transactions by the impugned parties. Overall, the costs of the insider trading violations are quite high, given the significant wealth effects produced by the events surrounding this case.

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