StudentShare solutions
Triangle menu

Finance - Dissertation Example

Nobody downloaded yet
These sorts of scandals caused several studies in which scholars and financial analyst tried to identify the content of information that the directors usually possess through which the directors were able to generate higher profits in the stock market. This paper clarifies whether directors outperform their business markets whenever they trade, when they buy, or when they sell. The research paper also establishes the characteristics in transaction level, the firm level, or the director-level, which determine the directors’ trade profitability. Based on the same, hardly any existing studies provide adequate empirical evidence of percentage gain by directors generated by directors in their process of purchasing or selling company shares. The paper also provides that directors are better selling off shares, through insider trading, rather than purchasing them at comparatively lower prices. For testing, data was extracted from the New York Stock and NASDAQ of fifty randomly selected companies. The insider trading information of these companies for the financial period January 1, 2009 until June 30, 2012 was analyzed. The testing has proved the hypothesis that directors are able to generate abnormal profit through the insider trading sale transactions. 1.0 Introduction In the world of economics and finance, when it comes to financial malpractices, insider trading tops the list. Insider trading is one of the most notorious financial crimes being practiced by managers, directors and other employees all around the globe. An individual who has direct and reliable access to the non-public information about the security can define insider trading as the buying and selling of a security. Insider trading is not always considered as a malpractice or illegal and is subjective to the underlying intention to the transaction. The statement can be further elaborated by considering the fact that if the trader is reaping profits on the basis of such information which is not being public yet, then the insider trading transaction is illegal. In addition, insider trading does not always mean that buying and selling of security is taking place. Providing confidential information to a third party, in exchange of monetary or any other form of consideration, is also illegal. The practice of insider trading is not confined to Directors of any corporation but the practice also prevails among brokers and even the family members of the directors. Although, once the information is public, the inside transaction is not illegal as the parties involved does not derive any unfair advantage over the general public. Media has made the masses at general knowledgeable with the passage of time and they have also equipped themselves with the technicalities of insider trading especially after the cases of Enron and Martha Stewart. The Securities and Exchange Commission of USA has adopted the practice of enforcing strict and practical guidelines which distinguishes legal and illegal trading of the shares by the inside people. Insider trading is not a recent or a latest money making gimmick which has been exploited by the directors and managers to earn higher return. The history of insider trading dates back to the great depression as well. The securities and exchange commission of the United State ...Show more


Contents Contents 2 Abstract 3 1.0Introduction 4 2.0Literature Review 8 3.0Methodology 15 Table2: Abnormal Gain on purchase transactions 24 Abstract Insider trading has always been in question among the regulatory bodies all across the globe. Although anybody from inside the corporations can commit insider trading, however directors have always remained the pioneer of doing so…
Author : magnusrutherfor
Finance essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the dissertation on your topic
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Empirical Finance: The Failure of Merger of Equals
There was no conclusive evidence that it would have been. 1.0 Introduction Mergers and acquisitions are considered to be two of the options that are available to companies and that will allow them to grow. Organic growth is another method; however, this method is not as aggressive as mergers and acquisitions.
26 pages (6500 words) Dissertation
Role of dividend signalling in corporate finance
performance 24 Introduction 24 Measures of operating performance 25 Operating performance at surrounding announcement period 25 Conclusion 26 Chapter 6: Impact of dividend announcement on stock price 27 Stable vs. abnormal announcement of dividend 27 Chapter 7: Future earnings prediction 28 Chapter 8: Analysis of impact of dividend on shareholders 29 Signal from dividend yield 29 Signal from dividend coverage ratio 29 Signal from dreaded dividend cut 30 Dividend on strategic management decisions 31 Dividend signals fare value of a firm 32 Chapter 9: Conclusion 33 34 Reference 35 Bibliography 38 Appendices 39 Abstract This paper presents a financial research work on dividend signalling which h
32 pages (8000 words) Dissertation
Brief Background The global financial market is one of the highly affected areas of financial stability during the emergence of financial crisis which also delayed economic developments. It has been reported that Islamic banks are not greatly affected by global financial crisis unlike the tremendous losses incurred by conventional banks in a cross-country examination.
8 pages (2000 words) Dissertation
Developing a Best Practice framework for setting up an offshore jurisdiction in Islamic Finance
The market for Islamic Financial products is at least USD 5 trillion. Modern Islamic finance and banking took off in 1960’s after Egypt launched a Social Bank. Initially, Islamic Finance was confined to Middle East; however, Pakistan and Sudan have tried to ‘Islamicise’ all their financial systems.
10 pages (2500 words) Dissertation
Islamic Finance Law
In the changing format of globalization and technology, the complex structure of international, national and regional economics and finance has become a major challenge for the global entities. The traditional model of financial institutions needs to incorporate wider interests of emerging new pluralistic society.
6 pages (1500 words) Dissertation
'Effective Finance Management in Small Business Restaurant in Ireland'
In order to view the problem from every facet and identify appropriate solution, the researcher has conducted both secondary research and primary research for collecting data. The secondary data was used for conducting a critical review of the literature.
80 pages (20000 words) Dissertation
International source of finance for india as developing country
Sources 28 Methodological Framework 32 Conclusion 37 Chapter 4: Findings and Analysis 38 Introduction 38 Presentation of Empirical Results and Interpretation 39 Analysis of Result 53 Conclusion 55 Chapter 5: Conclusion 55 Introduction 55 Summary of the Study with Emphasis on Key Findings 56 Implication of Findings 57 Direction for Further Research 58 References 59 Bibliography 62 Appendices 63 Chapter 1: Introduction Background of the Study The economy of India has undergone an intense evolution over the previous fifteen years, due in large part to restructurings instituted by the current prime minister, a respected international economist and a former finance minister (Kanuk, 2007, p.1).
48 pages (12000 words) Dissertation
Management Accounting and Finance in U.K. museums and music organisations
This particular dissertation based assignment aims to discuss about the finance as well as management accounting aspects of the museums and music organizations located in the UK.
36 pages (9000 words) Dissertation
Management Accounting and Finance in U.K. Museums and Music Organisations
According to the paper management accounting plays an important part in decision making, planning and controlling for the organizations. The business firm have been seen to implement various accounting techniques, which helps them in attaining profitability. The business environment in which the non profitable organizations operate has changed and new challenges have evolved.
6 pages (1500 words) Dissertation
The SAP ERP at the finance department of Al Jazeera
The theoretical basis for the study is the agency theory. The research was performed on the basis of an existing study by Pink (2009) who also looked into the agency theory of ERP implementation. In the study, it was found that the possible causes of resistance could come from several angles including a conflict between managers and employees.
71 pages (17750 words) Dissertation
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Let us find you another Dissertation on topic Finance for FREE!
Contact us:
Contact Us Now
  • About StudentShare

  • Testimonials

  • FAQ

  • Blog

  • Free Essays
  • New Essays
  • Essays

  • The Newest Essay Topics
Join us:
Contact Us