Insider Information, Market Manipulation And Security Market Regulation

The insider manipulation is a dynamic speculation between information manipulator and uniformed trader. The superior information traders manipulate insider information, get illegal benefit and aim at risk shift. Although the insider manipulation is prohibited in most country's legislation, it still doesn't clear away both in mature and emerging capital market. Anti-manipulation has now been an important theoretical and practical subject in effectively protecting the benefits of minority shareholders and ensuring the sustainable development of the stock markets in China.Based on the asymmetric information of different investors, this paper puts most of its attention on the relationship between insider manipulation and minority shareholders'benefit, as well as the insider manipulation regulation system. The first part of this paper describes some related basic theory. Together with the typical case, the paper then find insider manipulation has now become the main form of market manipulation in today's security market. Furthermore, under the help of theoretical and empirical study, this paper explores the relationship between insider manipulation and minority shareholders'benefit. In the last part, the paper puts forward concrete suggestions on insider manipulation regulation from the part of information disclosure and legal system.The major innovations of the thesis lay in the following aspects: Firstly the current literatures mostly concentrate on insider trading, market manipulation and misrepresentation respectively, while they seldom make systematic research on manipulation based on insider information, therefore this paper is quite innovative in its perspective of research. Secondly, taking the investor structure into consideration, this paper establishes a theoretical model to discuss the behavior of insider manipulation, and conduct an empirical study with the black sample of China's listing companies. Besides, by elaborately discussing the existing problem in China's information disclosure and legal system, this paper draws some instructive conclusion and puts forward some detailed suggestions.