The Inhibition of Institutional Investors' Shareholding on Insider Trading Profitability

Jingfang Cui; Yihe Wang

doi:10.54097/fxfaxd10

Authors

Jingfang Cui
Yihe Wang

DOI:

https://doi.org/10.54097/fxfaxd10

Keywords:

Insider trading, Institutional Ownership, Information Asymmetry.

Abstract

Insider trading, as an important phenomenon affecting market fairness, market efficiency and investor information in the capital market, has been the focus of research for a long time. Based on the data of all A-share listed companies from 2018 to 2023, this paper deeply discusses the inhibitory effect of institutional investors' Shareholding on insider trading profitability, and analyzes its path through the intermediary variable of information asymmetry. On this basis, the study further distinguishes the differential impact of institutional investors on insider trading profitability under different types of institutional investors (such as funds, securities companies, insurance institutions) and different equity properties (state-owned enterprises and non-state-owned enterprises). At the same time, the results are verified by a series of robustness tests.

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