The Impact of Industrial Network Structure on Insider Trading

Jingpin Yuan ()
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Jingpin Yuan: Huazhong University of Science and Technology, School of Economics

A chapter in Proceedings of the 2026 11th International Conference on Social Sciences and Economic Development (ICSSED 2026), 2026, pp 436-442 from Springer

Abstract: Abstract Opportunistic share reduction by executives is an insider trading behavior reflecting short-termism, influenced by trade information within industrial networks of the real economy. How to effectively prevent such practices to maintain market fairness and stability warrants exploration. Using social network analysis methods and data from Chinese A-share listed companies, this study investigates whether opportunistic share reduction by executives is affected by the position of their industry within industrial networks. Findings reveal that companies located at the center of industrial networks are more prone to opportunistic share reduction by executives. This study not only offers an industrial network perspective for examining the motivations behind insider trading behaviors like opportunistic share sales by executives but also delves into the mechanisms of information asymmetry within industrial networks. It provides valuable practical insights for preventing and governing insider trading, protecting the interests of investors, and promoting the healthy and stable development of China's capital markets.

Keywords: Supply chain; Insider trading; Corporate governance (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6239-701-9_45

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DOI: 10.2991/978-94-6239-701-9_45

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