Michael H. Wang

Why is insider trading law ineffective? Three antitrust suggestions

Purpose The purpose of this paper is to uncover the essence of insider trading, explain why insider trading law is ineffective and provide implications of the effectiveness of the law. Design/methodology/approach This conceptual paper offers three propositions. The first two are based on a literature review of 62 articles in empirical research to develop an understanding of the essence of insider trading and identify the areas in which insider trading is ineffective. This analysis is used in the third proposition to provide a direction in suggesting effective measures to improve insider trading law. Findings The essence of insider trading is that corporate insiders exercise informational monopoly power over their trades. This understanding explains why insider trading law is ineffective because it has not taken away the monopoly power that corporate insiders possess and exercise. This understanding also leads to three antitrust suggestions aimed at improving insider trading law. Practical implications The findings may provide assistance to the lawmakers and regulators to make insider trading law more effective and enforcement more simplified. Originality/value This paper is of value to other researchers attempting to understand the essence of insider trading and to policymakers concerned about the existence of monopolistic behavior in the equity market and income inequality due to corporate insiders’ trading profit.

Economic development and health improvement: mutual support in the historical UK (1541-2001)

The purpose of this paper is to study the mutual disruption and support of economic growth and health improvement in the last 500 years in the UK.,The paper is a general review and it compares institutional development, public policy, technological advances and scientific discoveries in economic growth with those in health improvement.,The paper finds the co-existence of slower economic growth and less increasing life expectancy from 1541 to 1871 and that of faster economic growth and rising life expectancy from 1871 to 2001. It is organized health improvement that effectively propelled economic growth in the time span of 1871-2001.,The findings may contribute to the literature on mutual enhancement between economic growth and health improvement.,The findings may also provide implications to the policy makers how important organized health improvement is to economic growth.,The findings show that when UK Government was leading in organized health improvement for the population, economic grown got propelled into a faster lane.,This paper is among the first to unveil that a socially responsible government has permanent impact on the paths of both economic and social growth. It has value to other researchers attempting to understand the mutual disruption and support of economic growth and health improvement in the historical UK.