Comments on “The use of statistical techniques in the interpretation and implementation of South African insider trading legislation”

R C van den Honert and G D I Barr

South African Journal of Accounting Research, 1997, vol. 11, issue 2, 95-100

Abstract: In a recent paper Botha (1995) proposes the use of statistical techniques and models from modem finance to show that the abnormal returns on a firm’s share price in some window period immediately before a specific event was not merely a chance event, but rather that firm-specific information caused material share price changes during the window period. He suggests that this model can thus be used iu South African courts to enforce insider trading legislation. We identify two blemishes in Botha’s reasoning and model, which should be rigorously addressed and resolved before any claim can be made that the method could be practically implemented as a tool to identify’ insider trading.

Date: 1997
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/10291954.1997.11435075 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:rsarxx:v:11:y:1997:i:2:p:95-100

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rsar20

DOI: 10.1080/10291954.1997.11435075

Access Statistics for this article

South African Journal of Accounting Research is currently edited by Soon Nel

More articles in South African Journal of Accounting Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().