Does stealth trading coexist with high levels of insider trading? Evidence from Kuwait

Bader Alhashel

Global Finance Journal, 2015, vol. 27, issue C, 112-118

Abstract: Stealth trading has been found to exist in the US, where informed investors submit medium-sized trades to reduce price impacts and camouflage their information. This paper reexamines this finding by placing the analysis in a different setting in which insider trading and private information sharing is very common during two different time periods — bull and bear markets. Using data on 34 stocks listed on the Kuwait Stock Exchange, I find that stealth trading exists in these two time periods. However, during bullish periods, stealth trading occurs through small-sized trades, while in bear markets, it occurs through medium-sized trades.

Keywords: Stealth trading; Microstructure; Insider trading; Emerging market (search for similar items in EconPapers)
JEL-codes: D82 G12 G14 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:27:y:2015:i:c:p:112-118

DOI: 10.1016/j.gfj.2015.04.007

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