Insider trading restriction enforcement, investor protection, and innovation

IF 16.4 1区化学 Q1 CHEMISTRY, MULTIDISCIPLINARY

Accounts of Chemical Research Pub Date : 2024-08-01 DOI:10.1111/jfir.12426

D. Brian Blank, Jiawei Chen, Valeriya Posylnaya

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引用次数: 0

Abstract

US Securities and Exchange Commission (SEC) enforcement actions are intended to protect investors and limit expropriation by firm insiders, but these SEC actions could affect insiders' incentives to contribute to value‐enhancing activities. Therefore, we explore how corporate innovation and performance respond to insider trading restrictions imposed by regulators and firms. Using manually collected data on SEC indictments against corporate insiders, we document more innovative activity following external insider trading restrictions. External restrictions are also followed by higher corporate investment, capital access, and operating performance. Similarly, internal blackout restrictions to insider trading are linked to more innovation as well. We use SEC and congressional rule changes as quasi‐natural experiments resulting in shocks in enforcement and indictments for identification and inference. Our results suggest insider trading restrictions and enforcement actions affect subsequent firm activities and managerial decisions by protecting outside investment, resulting in more investment in innovation.

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内幕交易限制的执行、投资者保护和创新

美国证券交易委员会（SEC）的执法行动旨在保护投资者并限制公司内部人员的侵占行为，但这些执法行动可能会影响内部人员对价值提升活动做出贡献的积极性。因此，我们探讨了企业创新和绩效如何应对监管机构和企业施加的内幕交易限制。利用人工收集的美国证券交易委员会对公司内部人的起诉数据，我们记录了外部内幕交易限制后更多的创新活动。受到外部限制后，企业投资、资本获取和经营业绩也会随之提高。同样，对内幕交易的内部封锁限制也与更多创新有关。我们将美国证券交易委员会（SEC）和国会的规则变化作为准自然实验，通过执法和起诉的冲击来进行识别和推断。我们的研究结果表明，内幕交易限制和执法行动会通过保护外部投资来影响公司的后续活动和管理决策，从而导致更多的创新投资。

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来源期刊

Accounts of Chemical Research 化学-化学综合

CiteScore

31.40

自引率

1.10%

发文量

312

审稿时长

2 months

期刊介绍： Accounts of Chemical Research presents short, concise and critical articles offering easy-to-read overviews of basic research and applications in all areas of chemistry and biochemistry. These short reviews focus on research from the author’s own laboratory and are designed to teach the reader about a research project. In addition, Accounts of Chemical Research publishes commentaries that give an informed opinion on a current research problem. Special Issues online are devoted to a single topic of unusual activity and significance. Accounts of Chemical Research replaces the traditional article abstract with an article "Conspectus." These entries synopsize the research affording the reader a closer look at the content and significance of an article. Through this provision of a more detailed description of the article contents, the Conspectus enhances the article's discoverability by search engines and the exposure for the research.