Professor of Business Ethics at the universities of Leuven and Antwerp
Not Clearly Pro or Con to the question "Should Insider Trading by Congress Be Allowed?"
"Balancing the pros and cons of insider trading, one has to conclude...that there is very litle harm caused by insider trading. First, one has to stress the social gains that come with informational efficient capital markets. The more prices reflect information accurately, the better prices guide capital investment in the economy. Moreover, it creates an additional signaling device for management to communicate complex news in a credible way. The confidence of investors is not expected to decline, empirical studies showed no decrease of market liquidity and the non-informed counterpart of the insider was not harmed, on the contrary. Another important social benefit from insider trading is the market-based compensation scheme, which makes it also possible to reward the innovative and entrepreneurial inputs of corporate insiders..."
Peter-Jan Engelen & Luc Van Leidekerke, "The Ethics of Insider Trading Revisited," Journal of Business Ethics, Sep. 2007
Experts Individuals with JDs, PhDs, other relevant advanced degrees, and government officials with significant involvement in, or related to, insider trading issues. [Note: Experts definition varies by site.]
Involvement and Affiliations:
Professor, Business Ethics, University of Leuven
Professor, Business Ethics, University of Antwerp
Director, Centre for Economics and Ethics, Katholieke Universiteit Leuven
Director, Centre for Ethics, University of Antwerp
Chairman, Register Committee of Ethibel/Stock, Stake
Organizer, Annual Chair in Business Ethics, Lectures, at the universities of Leuven and Antwerp