Civil Liability of Taiwan’s Insider Trading Regulation－A case study of Securities and Exchange Act Article 157-1

• Main Authors: Ta-WeiWen, 温大瑋
• Other Authors: Hsuan-Chu Lin
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/73299p

碩士 === 國立成功大學 === 財務金融研究所在職專班 === 101 === In 1988, Legislative Yuan passed the amendment to the Article 157-1 Paragraph 3 of Securities and Exchange Act. The Article 157-1 Paragraph 3 of Securities and Exchange Act establishes the calculating standard that “trading counterparts who on the day of the violation undertook the opposite-side trade with bona fide intent, for damages in the amount of the difference between the buy or sell price and the average closing price for ten business days after the date of public disclosure.” The study attempts to examine the basis of the amendment to the civil liability in the view of finance and statistics by using 30 insider trading cases confirmed by the district courts (confirmed in the judgment of the timing of material information and the price of the perpetrators bought or sold) during 01/01/2008 to 04/01/2013. The empirical findings show that the current calculating standard is inappropriate and unreasonable.