Differences in Ethical Perceptions of Insider Trading

Abstract

In most jurisdictions, trading on material nonpublic information is prohibited, even when an investment manager is required to act in clients' best interests. Instead, the requirement to maintain market integrity typically trumps clients' interests.n Our survey results show that trading on inside information for personal benefit is viewed as significantly more unethical than is trading on inside information for the benefit of clients. Professionals with a specialized investment credential are the most stringent in their views.n Because protecting clients from potentially adverse market movements is desirable, and is viewed as somewhat ethical, our results suggest that the legal primacy of market integrity should be reexamined.

Does ownership structure matter for overshooting manipulation of hospitality and tourism stocks?

“…As previously stated, several technical indicators, such as the SOI and RSI, can detect stock price overshooting, including overbought (oversold) conditions ( Day et al., 2022 ; Kamalov, 2020 ; Ni et al., 2022 ; Pramudya and Ichsani, 2020 ). Furthermore, professional investors are primarily concerned with technical and fundamental information ( Bonenkamp, 2010 ), as well as undisclosed information ( Ahern, 2017 ; Hambusch et al., 2021 ). In fact, professional investors frequently use technical information such as moving averages ( Arajo et al., 2018 ; Metghalchi et al., 2019 ), relative strength indexes ( Cohen, 2020 ; Vo and Yost-Bremm, 2020 ), and stochastic oscillator indicators ( Taş and Gürsoy, 2016 ; Vo and Yost-Bremm, 2020 ).…”