Speaker: Professor Marc Goergen (IE University)
Hosted by: University of Liverpool Management School's Accounting and Finance
Open to: all University of Liverpool staff and students, with no sign up needed
Date: Wednesday 4 October 2023
Time: 15:00 - 16:15
Place: Management School - Seminar Room 1
Abstract
In 2016, the China Securities Regulatory Commission (CSRC) authorized the China Securities Investor Services Center (CSISC) to run a pilot program consisting of purchasing 100 common shares of each publicly traded company in Shanghai, Guangdong (excluding Shenzhen), and Hunan.
We hypothesize that the CSISC’s shareholdings affected the gains from insider trading in the targeted firms.
Using a difference-in-differences approach, we find that the program decreased the overall profits from insider trading.
The program also reduced the losses avoided by insider sales, which experienced a significant drop by between 1.5 and 1.8 basis points of the firms’ market value.
Co-authored by Professor Marc Goergen and Guoqiang Hu (Tianjin University of Finance & Economics) and Jason Z. Xiao (University of Macau).
Keywords
Insider trading, corporate governance, corporate control and ownership, minority shareholder protection
Speaker
Marc Goergen is a full Professor of Finance at IE University. Previous appointments include UMIST and the Universities of Cardiff, Manchester, Reading and Sheffield.
Marc is a Research Member of the prestigious European Corporate Governance Institute (ECGI) and a former member of the Corporate Governance Committee of the Institute of Chartered Accountants of England and Wales (ICAEW).
Marc is an Associate Editor of the British Journal of Management, the British Accounting Review and the European Journal of Finance. He is also an Editorial Board Member of various other journals.
Previously, he also served as an Associate Editor for the Journal of Corporate Finance and the Journal of Banking and Finance.
He has published widely on corporate governance and finance in academic journals, including the Journal of Finance, Journal of Corporate Finance, Entrepreneurship Theory and Practice, Industrial Relations, and the Journal of Law, Economics, & Organization. He is also the author of three research monographs as well as a successful textbook on corporate governance.
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