Research on Illegal Insider Trading in China's Stock Market from the View Of Corporate Governance
研究发现公司治理差是内幕交易的根本原因；治理好的公司内幕交易概率低，能减少股价波动和信息不对称；外部法律体系难以阻止内幕交易，根本措施是改善公司内部治理。
This paper investigates the illegal insider trading activities in China's stock market from the view of corporate governance.The empirical results reveal that poor corporate governance is the essential reason for insider trading.Three basic conclusions can be reached:first,insider trading activities bring high abnormal returns, cause the fluctuation of shares of transactions and increase information asymmetry of the firm and have a bad effect on the company and investors.Second,well-government companies have a low probability of insider trading,which mitigate the fluctuation of shares of transactions and information asymmetry.Third,different kinds of insiders display different insider trading characteristics and routes that corporate governance affecting insider trading.Fourth,present external governance legal system cannot prevent insider trading activities;the fundamental measure is to improve the corporate governance in the firm level.