Rules against insider trading also boost innovation, research finds
By D. Brian Blank, Associate Professor of Finance, Mississippi State University
Jiawei Chen, Assistant Professor of Finance, University of West Alabama
Valeriya Posylnaya, Assistant Professor of Finance, University of Minnesota Duluth
Strong enforcement of insider trading laws doesn’t just protect investors – it encourages businesses to be more innovative, according to our new peer-reviewed research.
In fact, we found that after a company is hit with an insider-trading indictment, it generally produces more patents – which in turn are cited more by other patents – than it did before…
Read complete article
© The Conversation
-
Wednesday, December 18, 2024