A Study on the Calculating Method of Damage Compensation from Illegal Insider Trading

• Main Authors: Mu-HsunTseng, 曾睦勛
• Other Authors: Ting-Kai Chou
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/g5my72

碩士 === 國立成功大學 === 財務金融研究所碩士在職專班 === 104 === This thesis examines the method used to calculate the amount of compensation that should be paid for insider trading, based on the Securities and Exchange Act in Taiwan. Illegal insider trading is when that insiders take advantage of unpublicized information to earn greater returns than public investors, thus causing damage to the counterparties. The abnormal returns (AR) and cumulative abnormal returns (CAR) of illegal insider trading, as based on court cases in Taiwan from 2006/01/01 to 2015/12/31, are calculated in this thesis. First, the study finds that the events which influence stock prices occur not more than two days after the major information has been released. Second, this study calculates CAR from when insider trading begins and compares it with the CAR two days after the related information is released and compared it with the CAR during statutory period of Securities and Exchange Act. The study finds that insider traders may pay more compensation than they should pay to the counterparties, based on the Securities and Exchange Act. The results of this thesis could be a reference for legislature when they amend the Securities and Exchange Act.