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Insider trading was the subject of extensive political debate from 1989 through to 1991, culminating in substantial amendments to the Corporations Law. The political climate for this legislative action was influenced by a high profile empirical study by Tomasic and Pentony asserting that insider trading was both widespread and harmful. This study is critically appraised with respect to a number of methodological issues and in particular, questions are raised as to whether the inferences drawn from the evidence are justifiable. Alternative methods for empirical research into the insider trading phenomenon are noted.
Australian & New Zealand Journal of Criminology – SAGE
Published: Dec 1, 1996
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