Governance in Romania: Exploring the determinants of corporate insider trading

IF 9.4 3区 管理学 Q1 BUSINESS, FINANCE
Cătălin N. Albu, Nadia Albu, Allan Hodgson, Zhengling Xiong
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引用次数: 2

Abstract

Romania ranks at the extreme low end in Eastern Europe in terms of Hofstede cultural insights, rule of law, government effectiveness, and corruption—potentially limiting governance quality for restricting resource channeling. In this paper, we examine whether these shortcomings flow over into the degree of corporate insider trading profitability at the firm level. Consistent with high power distance, low individualism, and voice and accountability, executives and their family members extract higher returns. The conjectured monitoring constraint of equity ownership had little impact on reducing profitable trading. Second, media reporting of firm-related scandals only restrained insider profitability in firms with government ownership—consistent with general forbearance of corruption and sanction from the use of politically controlled assets. Third, the global financial crisis revealed both a crisis of inept trading consistent with high uncertainty avoidance and also highly profitable trades for a limited set of executives who undertook short-term reversal strategies. Our exploratory microanalysis suggests a prototype to highlight areas requiring governance and investor attention in Eastern European countries.

罗马尼亚的治理:探讨公司内幕交易的决定因素
在Hofstede文化见解、法治、政府效率和腐败方面,罗马尼亚在东欧排名极低,这可能会限制资源渠道的治理质量。在本文中,我们研究了这些缺陷是否会在公司层面上影响公司内幕交易的盈利程度。与高权力距离、低个人主义、话语权和问责制相一致,高管及其家庭成员获得了更高的回报。假设的股权监控约束对减少盈利交易影响不大。其次,媒体对公司相关丑闻的报道只限制了政府所有公司的内部盈利能力——这与普遍容忍腐败和禁止使用政治控制的资产是一致的。第三,全球金融危机既暴露了一场与高度不确定性规避相一致的笨拙交易危机,也暴露了一小部分采取短期逆转策略的高管的高利润交易。我们的探索性微观分析提出了一个原型,以突出东欧国家需要治理和投资者关注的领域。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
9.10
自引率
2.00%
发文量
23
期刊介绍: The Journal of International Financial Management & Accounting publishes original research dealing with international aspects of financial management and reporting, banking and financial services, auditing and taxation. Providing a forum for the interaction of ideas from both academics and practitioners, the JIFMA keeps you up-to-date with new developments and emerging trends.
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