The University of Nottingham homepage
Main Menu

‘Political Connections and White-collar Crime: Evidence from Insider Trading in France’ – Marc Sangnier (University of Namur)

Loading Map....

NICEP is delighted to be inviting Marc Sangnier (University of Namur) to deliver a talk entitled ‘Political Connections and White-collar Crime: Evidence from Insider Trading in France’ for the Autumn schedule of its seminar series.

Abstract

This paper investigates whether political connections affect individuals’ propensity to engage in illegal activities in financial markets. We use the  2007 French presidential election as marker of change in the value of political connections, in a difference-in-differences research design. We examine the behavior of directors of publicly listed companies who are connected to the future president through campaign donations or direct friendships, relative to that of other non-connected directors, before and after the election. We uncover indirect evidence that connected directors do more illegal insider trading after the election. More precisely, we find that purchases by connected directors trigger larger abnormal returns, and that connected directors are more likely not to comply with trading disclosure requirements and to trade closer to major corporate events.

Date/Time
Date(s) - 21 Nov 2019
12:00 pm - 1:00 pm

Location
C10, Teaching & Learning Building