Uso de Información Privilegiada y Retornos Anormales: Casos en Chile

Edinson Cornejo-Saavedra and Luis Améstica-Rivas
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Edinson Cornejo-Saavedra: Departamento de Gestión Empresarial, Facultad de Ciencias Empresariales. Universidad del Bío-Bío. Chile.
Luis Améstica-Rivas: Departamento de Gestión Empresarial, Facultad de Ciencias Empresariales. Universidad del Bío-Bío. Chile.

Revista Ciencias Administrativas (CADM), IIA, Universidad Nacional de La Plata, 2022, issue 19, No 7, 15 pages

Abstract: Insider trading can undermine confidence in the market. This practice can generate abnormal profits for insiders, to the detriment of outside investors. This study analyses the behaviour of the stock returns of five Chilean companies involved in insider trading between 2004 and 2014. These cases are related to information about the company’s businesses, the publication of the financial statements, merger agreements, and firm acquisitions. By studying the events, abnormal returns are calculated before and after the announcements made by the companies to the Comisión para el Mercado Financiero. Positive and significant abnormal returns are observed in the days prior to the announcement in four of the five analysed cases. In addition, the average daily abnormal return is 6.85% between the day before and the day of the announcement, which is statistically significant. The above shows the benefits that the leak of private information could generate.

Keywords: insider trading; event study; abnormal event; emerging market. (search for similar items in EconPapers)
JEL-codes: G10 G14 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:lap:recadm:157

DOI: 10.24215/23143738e097

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