Comments on the debate: “The use of statistical techniques in the interpretation and implementation of South African insider trading legislation”

Abstract

This paper reviews the discussion and comment relating to Botha’s (1995) proposed methodology for identifying insider trading. It is suggested that a causal nexus between trading with private information and an expectation of material price movement is essential. Suggestions are also made on the statistical treatment of the event study data and on the length of the event window.

Key Words:

• Insider Trading
• Event Study