Assistant Professor of Finance at Utrecht University
Position:
Not Clearly Pro or Con
to the question "Should insider trading by Congress be allowed?"
Reasoning:
"Balancing the pros and cons of insider trading, one has to conclude...that there is very little 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:
Assistant Professor, Finance, Utrecht University
Editor-in-Chief, Global Business & Economics Review
Former Lecturer, Corporate Finance, University of Antwerp
Education:
PhD, University of Antwerp
LLM, University of Antwerp
MSc, Applied Economics, Loyola University of Antwerp (UFSIA)
Cowritten with Luc Van Liedekerke, "The Ethics of Insider Trading Revisited," Journal of Business Ethics, Sep. 2007
"Difficulties in the Criminal Prosecution of Insider Trading - A Clinical Study of the Bekaert Case," European Journal of Law & Economics, 2006
Cowritten with Luc Van Liedekerke, "An Ethical Analysis of Regulating Insider Trading," Utrecht School of Economics Tjalling C. Koopmans Research Institute Discussion Paper Series 06-05, June 2006
Cowritten with Rezaul Kabir, "Empirical Evidence on the Role of Trading Suspensions in Disseminating New Information to the Capital Market," Journal of Business Finance & Accounting, Jan. - Mar. 2006
Cowritten with Danny Cassimon, "Impact of the Legal and Institutional Framework on the Financial Architecture of New Economy Firms in Developing Countries," Information Economics and Policy, Mar. 2005
"Criminal Behavior: A Real Option Approach. With an Application to Restricting Illegal Insider Trading," European Journal of Law and Economics, 2004
"Can Reputational Damage Restrict Illegal Insider Trading?" European Journal of Crime, Criminal Law and Criminal Justice, 2003
