The Library
Public disclosure by ‘small’ traders
Tools
Gelsomini, Luca (2012) Public disclosure by ‘small’ traders. Working Paper. Coventry: Economics Department, University of Warwick. Warwick economics research paper series (TWERPS), Volume 2012 (Number 998). (Unpublished)
|
Text (Working paper)
WRAP_Gelsomini_twerp_998a.pdf - Other Download (1075Kb) | Preview |
Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
Abstract
We model strategic trading by a rent-seeking insider, who exchanges without being spotted, and propose a comprehensive theory of market non-anonymity. Several novel results are established. They depend on asset value proprieties, beliefs, inter-temporal choices, and investorsí characteristics. In equilibrium, under a regulation mandating public trade revelation, disclosures may shift prices. If they do, uninformed manipulations arise only in some instances. SpeciÖcally, insiders constrained on asset holdings earn more than they would without such a disclosure rule. Consequently, mandating
disclosures is unnecessary, as informative trades will be revealed voluntarily. This result reveals a previously unexplored link to the literature on (uncertiÖed/non-factual) announcements.
Item Type: | Working or Discussion Paper (Working Paper) | ||||
---|---|---|---|---|---|
Subjects: | H Social Sciences > HB Economic Theory | ||||
Divisions: | Faculty of Social Sciences > Economics | ||||
Library of Congress Subject Headings (LCSH): | Insider trading in securities -- Mathematical models, Economics -- Mathematical models, Securities fraud -- Mathematical models, Foreign exchange market | ||||
Series Name: | Warwick economics research paper series (TWERPS) | ||||
Publisher: | Economics Department, University of Warwick | ||||
Place of Publication: | Coventry | ||||
Official Date: | 2012 | ||||
Dates: |
|
||||
Volume: | Volume 2012 | ||||
Number: | Number 998 | ||||
Number of Pages: | 15 | ||||
Status: | Not Peer Reviewed | ||||
Publication Status: | Unpublished | ||||
Access rights to Published version: | Open Access (Creative Commons) |
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |
Downloads
Downloads per month over past year