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An Economic Analysis of the Bekaert NV Insider Trading Case

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Author Info
Peter-Jan Engelen ()
Abstract

This article contains a clinical study of Bekaert NV, the biggest insider trading case in Belgium. Up to now, no economic analysis of this case was ever conducted. It showed that Belgian courts currently seem to lack knowledge of the functioning of financial markets to assess an insider trading case. Therefore their decisions give little guidance to future litigants. Using a law and economics framework, this case study is clarifying in several aspects compared to a traditional legal analysis. The analysis focuses on two aspects of an insider trading case. First, the price-sensitive character of the information is examined. Second, the standard of proof was examined.

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Paper provided by Utrecht School of Economics in its series Working Papers with number 06-04.

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Length: 26 pages
Date of creation: Jun 2006
Date of revision:
Handle: RePEc:use:tkiwps:0604

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Related research
Keywords: insider trading; regulation; criminal prosecution; standard of proof; law & economics;

Find related papers by JEL classification:
K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
K22 - Law and Economics - - Regulation and Business Law - - - Corporation and Securities Law
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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