Competition in the stock market with asymmetric information

dc.contributor.authorWang, Kun (Tracy)
dc.contributor.authorwang, wanbin
dc.date.accessioned2021-05-26T04:19:49Z
dc.date.issued2017
dc.date.updated2020-11-23T10:20:49Z
dc.description.abstractWe build a game theoretical model to examine how the level of information advantage of insiders and the competition between insiders and sophisticated investors affect stock price movements and traders’ trading strategies and profits. We show that the competition between insiders and sophisticated investors can reduce the losses of less sophisticated investors, and thus alleviates the disadvantaged position of the less sophisticated investors. Further, traders’ profits are affected by the accuracy of insiders’ private information, and the number of days that insiders have obtained the information in advance. These findings show the importance of information transparency and the role of sophisticated investors in limiting insiders’ trading advantages and mitigating the expropriation of investors by insiders. Keywords: Asymmetric information, Inside trading, Trading strategies, Trading profit, Nash equilibrium, Price movement JEL classification: C72; D82; G14en_AU
dc.format.mimetypeapplication/pdfen_AU
dc.identifier.issn0264-9993en_AU
dc.identifier.urihttp://hdl.handle.net/1885/233812
dc.language.isoen_AUen_AU
dc.publisherElsevieren_AU
dc.rights© 2016 Elsevier B.V.en_AU
dc.sourceEconomic Modellingen_AU
dc.subjectAsymmetric informationen_AU
dc.subjectInside tradingen_AU
dc.subjectTrading strategiesen_AU
dc.subjectTrading profiten_AU
dc.subjectNash equilibriumen_AU
dc.subjectPrice movementen_AU
dc.titleCompetition in the stock market with asymmetric informationen_AU
dc.typeJournal articleen_AU
local.bibliographicCitation.lastpage49en_AU
local.bibliographicCitation.startpage40en_AU
local.contributor.affiliationWang, Kun (Tracy), College of Business and Economics, ANUen_AU
local.contributor.affiliationWang, Walter, College of Business and Economics, ANUen_AU
local.contributor.authoremailu4340333@anu.edu.auen_AU
local.contributor.authoruidWang, Kun (Tracy), u4340333en_AU
local.contributor.authoruidWang, Walter, u4769978en_AU
local.description.embargo2099-12-31
local.description.notesImported from ARIESen_AU
local.identifier.absfor150103 - Financial Accountingen_AU
local.identifier.absfor150303 - Corporate Governance and Stakeholder Engagementen_AU
local.identifier.absseo919999 - Economic Framework not elsewhere classifieden_AU
local.identifier.ariespublicationu9900263xPUB249en_AU
local.identifier.citationvolume61en_AU
local.identifier.doi10.1016/j.econmod.2016.11.024en_AU
local.identifier.scopusID2-s2.0-85004191338
local.identifier.thomsonID000394399400004
local.identifier.uidSubmittedByu9900263en_AU
local.publisher.urlhttps://www.elsevier.com/en-auen_AU
local.type.statusPublished Versionen_AU

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