Contact Us


Frequently Asked Questions

ETD Help

Policies and Procedures

Copyright and Patents

Access Restrictions

Search ETDs:
Advanced Search
Browse by:
Browse ProQuest
Search ProQuest

Laney Graduate School

Rollins School of Public Health

Candler School of Theology

Emory College

Emory Libraries

Coming for Fall 2017 –a new and improved ETD site!

Insider Trading: What Really Protects U.S. Investors?

White, Roger McNeill (2017)
Dissertation (58 pages)
Committee Chair / Thesis Adviser: Dichev, Ilia
Committee Members: Green, Clifton ; Owens, Edward
Research Fields: Accounting; Finance; Law
Keywords: insider trading; short swing; Section 16(b)
Program: Laney Graduate School, Business
Permanent url:


I examine the ability of the U.S. investor protection regime to limit insider trading returns in a setting absent Section 16(b) of the Securities Exchange Act of 1934 (the short swing rule). I find that U.S. insiders in this setting execute short swing trades that (1) beat the market by about 15 basis points per day and (2) occur with remarkably high frequency around earnings surprises. These results indicate that the bright-line rule restricting short horizon roundtrip insider trading plays a substantial role in protecting outside investors from privately informed insiders in the United States.

Table of Contents

1. Introduction 1

2. Background and Literature Review 4

3. Empirical Approach 9

4. Results 12

5. Robustness Tests 21

6. Conclusion 27
7. References 30

Table 1 36

Table 2 37

Table 3 38

Table 4 39

Table 5 40

Table 6 42

Table 7 44

Table 8 45

Table 9 46

Table 10 48


Dissertation Appendix 49


application/pdf Dissertation 58 pages (428.8 KB) [Access copy of Dissertation]
Permission granted by the author to include this thesis or dissertation in this repository. All rights reserved by the author. Please contact the author for information regarding the reproduction and use of this thesis or dissertation.