Publication:
Informed Trading in Business Groups

creativeworkseries.issn 1564-698X
dc.contributor.author Pedraza, Alvaro
dc.date.accessioned 2021-12-09T21:40:52Z
dc.date.available 2021-12-09T21:40:52Z
dc.date.issued 2020-06
dc.description.abstract Business groups, which are collections of legally independent companies with a significant amount of common ownership, dominate private sector activity in developing countries. This paper studies information flows within these groups by examining the trading performance of institutional investors in firms that belong to the same group. Using a novel dataset with complete transaction records in Colombia, this paper estimates the difference in returns between trades of asset managers in group-affiliated companies and trades of non-affiliated managers in the same stocks during the same period. The data show that affiliated managers display superior timing ability and that their trades outperform those of non-affiliated managers by 0.85 percent per month. The evidence suggests that institutional investors with group affiliation access information that is only available to members of the group. In order to limit the use of private information, financial authorities might need to expand their disclosure rules to monitor the trades of group-affiliated investors. en
dc.identifier.citation World Bank Economic Review
dc.identifier.issn 1564-698X
dc.identifier.uri http://hdl.handle.net/10986/36714
dc.publisher Published by Oxford University Press on behalf of the World Bank
dc.relation.ispartofseries World Bank Economic Review
dc.rights CC BY-NC-ND 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.subject INSIDER TRADING
dc.subject INSTITUTIONAL INVESTOR
dc.subject BUSINESS GROUP
dc.subject FINANCIAL SERVICES
dc.title Informed Trading in Business Groups en
dc.type Journal Article en
dc.type Article de journal fr
dc.type Artículo de revista es
dspace.entity.type Publication
okr.date.disclosure 2021-12-01
okr.doctype Publications & Research
okr.doctype Publications & Research :: Journal Article
okr.identifier.doi 10.1093/wber/lhy012
okr.language.supported en
okr.peerreview Academic Peer Review
okr.region.administrative Latin America & Caribbean
okr.region.country Colombia
okr.topic Finance and Financial Sector Development :: Securities Markets Policy & Regulation
okr.topic Private Sector Development :: Business Development Services
okr.topic Private Sector Development :: Corporate Governance and Corruption
okr.topic Private Sector Development :: Enterprise Development & Reform
okr.topic Private Sector Development :: Private Sector Economics
okr.unit Development Research Group, Development Economics
okr.volume 34(2)
relation.isJournalIssueOfPublication c1ddfef5-136a-4090-84da-c8ba1cfe966c
relation.isJournalOfPublication c41eae2f-cf94-449d-86b7-f062aebe893f
relation.isJournalVolumeOfPublication 9226a193-11c5-4014-825a-f720c846ae2a
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