Topic: Trading in Broad Daylight: Insider Trading in Connected Firms during Trading Bans

Time & Date: 22 June 2026, 9:30-11:00

Venue：A409, ACEM, SJTU

Abstract:

Insiders are subjected to trading bans or close periods before earnings announcements. However, directors with multiple board seats can still trade in their other firms in "broad daylight," assuming these other firms are not subject to trading bans. We find evidence that private information about one firm can generate insider trading profits in other firms, evidenced by a positive correlation between the stock market reactions in the close and traded firms. In turn, this link is stronger for firms that are in a friendly relationship. Importantly, we find that institutional investors observe the trades and then mimic these trades in the connected firms that are subject to trading bans. This newly documented type of insider trading calls for regulators to extend trading bans to all firms on whose boards a director sits.

Speaker: Marc Goergen | Professor of finance at IE Business School. Research Interests: the intersection of corporate finance and corporate governance. He is an associate editor of the British Accounting Review, the British Journal of Management, European Financial Management, the European Journal of Finance, and the Journal of International Financial Management & Accounting. He has published in journals such as Entrepreneurship Theory and Practice, the Harvard Business Review, the Journal of Business Ethics, the Journal of Finance, the Journal of Financial Intermediation, and the Journal of Corporate Finance

Registration Link：https://wj.sjtu.edu.cn/q/MZb6NQxk