An unreliable canary: Insider trading, the cash flow hypothesis and the financial crisis

2016 ◽  
Vol 46 ◽  
pp. 151-158
Author(s):  
Brendan J. Lambe
Keyword(s):  
Financial Crisis ◽  
Cash Flow ◽  
Insider Trading

Economic Patriotism After the Crisis: Explaining Continuity and Change in European Securities Enforcement

2018 ◽  
Author(s):  
Chase Foster
Keyword(s):  
Financial Crisis ◽  
Insider Trading ◽  
Financial Regulation ◽  
Global Financial Crisis ◽  
Financial Supervision ◽  
Financial Centre ◽  
Continuity And Change ◽  
Financial Interests ◽  
Mixed Pattern ◽  
The Uk

Since the global financial crisis, European governments have sought to intensify the supervision of financial markets. Yet, few studies have empirically examined whether regulatory approaches have systematically shifted in the aftermath of the crisis, and how these reforms have been mediated by longstanding national strategies to promote domestic financial interests in the European single market. Examining hundreds of enforcement actions in three key European jurisdictions, I find a mixed pattern of continuity and change in the aftermath of the crisis. In the UK, aggregate monetary penalties and criminal sanctions have skyrocketed since 2009, while in France and Germany, the enforcement pattern suggests continuity, with both countries assessing penalties and prosecuting insider trading at similar rates before and after the crisis. I conclude that financial regulation is still structured by longstanding industrial strategies (Story and Walter, 1997), but where pre-existing regulatory approaches were seen as contributing to the crisis, a broader regulatory overhaul has been pursued. Thus, in the UK, where the financial crisis served as a direct rebuke to the country’s “light touch” regulation, financial supervision was overhauled, and monetary sanctions dramatically increased, to preserve London’s status as an international financial centre. By contrast, in France and Germany, where domestic regulatory systems were implicated by the financial crisis, domestic securities supervision and enforcement was less dramatically altered. While the crisis has led to the further institutionalization of European-level supervisory institutions, these changes have not yet led to convergence in national regulatory approaches.   Full text available at: https://doi.org/10.22215/rera.v12i1.1233

scholarly journals ERRATUM ON THE ARTICLE ‘THE IMPACT OF THE FINANCIAL CRISIS ON INSIDER TRADING PROFITABILITY IN BELGIUM ’ (DOI: 10.3846/16111699.2011.652980)

2013 ◽  
Vol 14 (2) ◽  
pp. 432-432
Author(s):  
Debby Van Geyt ◽  
Philippe Van Cauwenberge ◽  
Heidi Vander Bauwhede
Keyword(s):  
Financial Crisis ◽  
Insider Trading ◽  
The Impact

"Erratum on the article ‘The impact of the financial crisis on insider trading profitability in Belgium’ (doi: 10.3846/16111699.2011.652980)." Journal of Business Econimics and Management, 14(2), p. 432

Insider trading during the 2008 financial crisis

2011 ◽  
Vol 21 (5) ◽  
pp. 301-307 ◽  
Author(s):  
Naser I. Abumustafa ◽  
Salah A. Nusair
Keyword(s):  
Financial Crisis ◽  
Insider Trading ◽  
2008 Financial Crisis ◽  
The 2008 Financial Crisis

scholarly journals Crisis económica y financiera en los negocios que radicaron quiebra con el Capítulo 11 de Reorganización en Puerto Rico

Oikos ◽  
2016 ◽  
Vol 18 (37) ◽  
pp. 93
Author(s):  
Emmanuel Guzmán Rodríguez ◽  
Carlos F. Rosa Vázquez
Keyword(s):  
Puerto Rico ◽  
Financial Crisis ◽  
Economic Crisis ◽  
Cash Flow ◽  
Secondary Data ◽  
Purchasing Power ◽  
Managerial Efficiency ◽  
Probability Sample ◽  
Commercial Environment

RESUMEN El estudio examina el problema de las quiebras en Puerto Rico, y la posibilidad de que estas puedan afectar negativamente a los negocios y a su entorno social y comercial. Los análisis están fundamentados en datos secundarios obtenidos con una muestra probabilística de 126 negocios seleccionada con un 95% de nivel de confiabilidad y un margen de error de 5%. Se encontró que la crisis en este sector empresarial es ocasionada por un manejo no apropiado de los recursos financieros, en conjunto con la situación económica que ha resultado en una disminución del flujo monetario del país y la necesidad de financiamiento continuo con una economía en recesión/ depresión, pudiera provocar que la empresa radique un proceso de reorganización en la corte de quiebras. Este proceso se puede utilizar como una estrategia gerencial para mejorar el manejo de sus activos y pasivos corrientes en un plazo de tiempo establecido por la corte. Los resultados también muestran que algunos de los negocios pequeños, medianos y de dueños propios en Puerto Rico han experimentado el efecto de las quiebras en cadena, cuyas repercusiones tienen un efecto social y en otras entidades comerciales.Palabras clave: crisis financiera, crisis económica, reducción del flujo de efectivo, poder adquisitivo, eficiencia gerencial, insuficiencia de capital, deterioro de inventario.Financial and economic crisis of businesses in Puerto Rico that filed bankruptcy under Chapter 11 of Reorganization ABSTRACT The study examinesthe problemof bankruptciesinPuerto Rico,andthe possibility thatthesemay adversely affect the businessand its socialand commercial environment. The analysesare basedon secondary data obtained with a probability sample of126businessesselectedwith a 95%confidence leveland a margin oferror of 5%. It was found thatthe crisis in thebusiness sector were causedby impropermanagement of financialresources, together with the economic situationthat has resulted ina decrease incash flowin the countryand the need forcontinued fundingwith an economy in recession/ depression, couldcause thecompany to file for bankruptcy under chapter 11 of reorganization. Thisprocess can be usedas a managementstrategy to improvethe management of theirassetsand liabilitieswithin a period of time set bythe court.The results also showthat some of thesmall, mediumandsole proprietorships owners inPuerto Ricohave experiencedthe effect ofbankruptcies; and the repercussions have asocial and commercial impact.Keywords: financial crisis, economic crisis, reduced cash flow, purchasing power, managerial efficiency, insufficient capital, inventory impairment.Crise Econômica e Financeira nos negócios que estabeleceram a quebra com o Capítulo 11 de Reorganização em Puerto Rico RESUMOO estudo analisa o problema de quebras em Puerto Rico, e a possibilidade de que estas possam afetar adversamente aos negócios e seu ambiente social e comercial. As análises estão fundamentadas em dados secundários obtidos com uma amostra probabilística de 126 negócios selecionados com um nível de confiança de 95% e uma margem de erro do 5%. Encontrou-se que a crise neste sector empresarial é causada por uma gestão não apropriada dos recursos financeiros, em conjunto com a situação econômica que resultou numa diminuição do fluxo monetário do país e a necessidade de financiamento continuo com uma economia em recessão / depressão, o que pode provocar que a empresa estabeleça um processo de reorganização na Corte de Quebras. Este processo se pode utilizar como uma estratégia de gestão para melhorar a administração dos seus ativos e passivos correntes dentro de um período de tempo fixado pelo tribunal. Os resultados mostram também dão conta que alguns dos negócios pequenos, médios e de proprietários de Puerto Rico, têm experimentado o efeito das quebras em cadeia, onde as repercussões têm um impacto social e outras entidades comerciais.Palavras-chave: crise financeira, crise econômica, redução de fluxos de efetivo, poder aquisitivo, eficiência de gestão, insuficiência de capital, deterioro de inventário.

scholarly journals Firm Financial Status and Investment Behaviour: Evidence from Manufacturing Firms in Nigeria

2019 ◽  
Vol 22 (1) ◽  
pp. 73-92
Author(s):  
Alarudeen Aminu ◽  
Isiaka Akande Raifu
Keyword(s):  
Panel Data ◽  
Financial Crisis ◽  
Stock Market ◽  
Cash Flow ◽  
Instrumental Variable ◽  
Global Financial Crisis ◽  
Manufacturing Firms ◽  
Financial Status ◽  
Instrumental Variable Estimation ◽  
Investment Behaviour

AbstractThe study examines firm’s investment behaviour sensitivity to cash flow before, during and after the recent global financial crisis using the data of 28 firms listed on the Nigerian Stock Market during the period from 2001 to 2012. The contribution of the study to the existing literature rests on using financial crisis as basis for classifying firms as either financially constrained or unconstrained. Employing the panel data and instrumental variable estimation techniques, the study finds that firms’ investment behaviour sensitivity to cash flow was higher during the financial crisis than before or after the financial crisis. In other words, Nigerian firms were highly financially constrained during the last financial crisis.

scholarly journals Economic Patriotism After the Crisis: Explaining Continuity and Change in European Securities Enforcement

2018 ◽  
Vol 12 (1) ◽  
Author(s):  
Chase Foster
Keyword(s):  
Financial Crisis ◽  
Insider Trading ◽  
Financial Regulation ◽  
Global Financial Crisis ◽  
Financial Supervision ◽  
Financial Centre ◽  
Continuity And Change ◽  
Financial Interests ◽  
Mixed Pattern ◽  
The Uk

Since the global financial crisis, European governments have sought to intensify the supervision of financial markets. Yet, few studies have empirically examined whether regulatory approaches have systematically shifted in the aftermath of the crisis, and how these reforms have been mediated by longstanding national strategies to promote domestic financial interests in the European single market. Examining hundreds of enforcement actions in three key European jurisdictions, I find a mixed pattern of continuity and change in the aftermath of the crisis. In the UK, aggregate monetary penalties and criminal sanctions have skyrocketed since 2009, while in France and Germany, the enforcement pattern suggests continuity, with both countries assessing penalties and prosecuting insider trading at similar rates before and after the crisis. I conclude that financial regulation is still structured by longstanding industrial strategies (Story and Walter, 1997), but where pre-existing regulatory approaches were seen as contributing to the crisis, a broader regulatory overhaul has been pursued. Thus, in the UK, where the financial crisis served as a direct rebuke to the country’s “light touch” regulation, financial supervision was overhauled, and monetary sanctions dramatically increased, to preserve London’s status as an international financial centre. By contrast, in France and Germany, where domestic regulatory systems were implicated by the financial crisis, domestic securities supervision and enforcement was less dramatically altered. While the crisis has led to the further institutionalization of European-level supervisory institutions, these changes have not yet led to convergence in national regulatory approaches.

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