Do They Do It for the Money?

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CFA Digest
May 2012 | Vol. 42 | No. 2 | 3 pages
Source: CFA Institute
Utpal Bhattacharya Cassandra D. Marshall
Servaas Houben, CFA (Reviewer)

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Abstract

Previous studies have attributed insider trading to either rational economic motivations or noneconomic motivations. The authors use a database of insider-trading indictments and statistical analysis to show that insider trading cannot be explained by mainly economic motivations but that psychological and sociological explanations might be the main driving forces.

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