Views from the regulated: financial analysts and insider information

Gunnar Wahlström

International Journal of Managerial and Financial Accounting, 2012, vol. 4, issue 3, 272-290

Abstract: The abuse of insider information has the potential to destroy confidence in companies, which may erode company market values and, ultimately, destabilise societies. This article presents original information, acquired through 25 semi-structured interviews, about financial analysts' attitudes towards the use of insider information. Although much of the literature asserts that the role of professional associations in the regulatory function has decreased, the article proposes reinforcing the role of such associations as a way of addressing the problem of regulating the abuse of insider information. The article poses the question: How can the role of associations in financial regulation be reinforced? The main conclusion, supported by the theoretical framework, is that the problems of insider information abuse are best solved in a public debate initiated by the relevant associations. Such a public debate could lead to greater awareness of the problems, to possible solutions and to improved professional conduct. Ultimately, social order may be better enforced and maintained. Thus, in this way, the role of associations themselves may be strengthened.

Keywords: financial analysts; analyst attitudes; insider information; financial regulation; social order; professional associations. (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:ids:injmfa:v:4:y:2012:i:3:p:272-290

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