Volume 13 No. 2, December 2014
ARTICLE INFO
Article History:
Received: 13 April 2014
Accepted: 02 October 2014
Published: 30 December 2014
MANAGEMENT AND ACCOUNTING REVIEW, VOLUME 13 NO. 2, DECEMBER 2014
THE PROBABLE FACTORS OF INSIDER TRADING IN MALAYSIAN FIRMS PRIOR TO ACQUISITION ANNOUNCEMENT
Majid Sarli
Putra Business School, University Putra Malaysia, Malaysia
Putra Business School, University Putra Malaysia, Malaysia
Olivia Tan Swee Leng
Graduate School of Management, Multimedia University, Cyberjaya, Malaysia
Betsabeh Aghashahi
International Business School, Universiti Teknologi Malaysia,
Kuala Lumpur, Malaysia
Abduljalil Sarli
Faculty of Management, Universiti Teknologi Malaysia, Johor Baharu, Malaysia
ABSTRACT
The aim of this paper is to deliberate on the subject of insider trading that is viewed as a financial crime as well as to identify major factors that can contribute to reducing it. In this case, this research is focuses on investigation of companies’ acquisition announcements, which are listed from the traded volumes of Bursa Malaysia between 2008 and 2011. The study used a sample of considered thirty companies and their acquisition announcements are analyzed by examining their Average Cumulative Abnormal Volume Traded (ACAVT) to identify probable insider trading activities. The study affirms consequently, stronger laws, effective rules and regulations are recognized as efficient approaches to controlling insider trading at the financial markets, while the influencing factors on insider trading would be suggested as the proposed conceptual model for further research.
Keywords: Insider trading; Financial crime; Bursa Malaysia
Keywords: Insider trading; Financial crime; Bursa Malaysia