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An event based approach for quantifying the effects of securities fraud in the IT industry

Author

Listed:
  • Lorne N. Switzer

    (Concordia University)

  • Jun Wang

    (University of Western Ontario)

Abstract

Detecting the incidence and impact of illegal insider trading is a difficult process since access to the actual trading records of insiders that overlap precisely with fraudulent events is difficult. This paper provides a case study of a specific IT stock in Canada that was successfully prosecuted in the Canadian court system for market manipulation and illegal insider trading violations. The study provides a quantification of the impact of insider trading activities by the President directly through his own account or through accounts under his control, and illustrates the impact of some off-exchange transactions by the impugned parties. Overall, the costs of the insider trading violations are quite high, given the significant wealth effects produced by the events surrounding this case.

Suggested Citation

  • Lorne N. Switzer & Jun Wang, 2017. "An event based approach for quantifying the effects of securities fraud in the IT industry," Information Systems Frontiers, Springer, vol. 19(3), pages 457-467, June.
    • Handle: RePEc:spr:infosf:v:19:y:2017:i:3:d:10.1007_s10796-017-9753-3
    DOI: 10.1007/s10796-017-9753-3
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    Cited by:

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    2. Rajan, Rishabh & Rana, Nripendra P. & Parameswar, Nakul & Dhir, Sanjay & Sushil, & Dwivedi, Yogesh K., 2021. "Developing a modified total interpretive structural model (M-TISM) for organizational strategic cybersecurity management," Technological Forecasting and Social Change, Elsevier, vol. 170(C).

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