Is there evidence of insider trading in Australian water markets?

Simon de Bonviller, Alec Zuo () and Sarah Wheeler

Australian Journal of Agricultural and Resource Economics, 2019, vol. 63, issue 2, 307-327

Abstract: Insider trading is a much studied form of market manipulation in the financial market literature. However, studies addressing the issue of insider trading in resource markets, and in particular water markets, are rare. This study investigates the occurrence of insider trading practices around important water market allocation announcements in the Goulburn temporary water market trading zone in the Murray–Darling Basin, Australia, which is one of the largest and longest operating water market districts in the world. Nine years of daily water allocation volume and price transactions between 2008 and 2017 are modelled, with some evidence found of abnormal price movements in the 3 or 5 days preceding water allocation announcements, and especially before the introduction of insider trading rules in 2014. However, although the results do suggest some very weak statistically significant evidence that insider trading may still be present in Goulburn water markets post‐2014, it is just as feasible that our results may also reflect an increased sophistication of trader behaviour over time.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://doi.org/10.1111/1467-8489.12298

Related works:
Journal Article: Is there evidence of insider trading in Australian water markets? (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ajarec:v:63:y:2019:i:2:p:307-327

Ordering information: This journal article can be ordered from
http://ordering.onli ... 1111/(ISSN)1467-8489

Access Statistics for this article

Australian Journal of Agricultural and Resource Economics is currently edited by John Rolfe, Lin Crase and John Tisdell

More articles in Australian Journal of Agricultural and Resource Economics from Australian Agricultural and Resource Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().