Do algorithm traders mitigate insider trading profits?: Evidence from the Thai stock market

This paper asks whether algorithm traders (AT) mitigate insider trading profits in the Thai stock market over the period of 2010–2016. We find that in general it does but not in the case of buy side, big trades nor the executive trades. Our findings suggest that, to some extent, AT can take importan...

Full description

Saved in:
Bibliographic Details
Published inPloS one Vol. 16; no. 7; p. e0255057
Main Authors Wongsinhirun, Nopparat, Chatjuthamard, Pattanaporn, Treepongkaruna, Sirimon, Likitapiwatc, Tanakorn
Format Journal Article
LanguageEnglish
Published San Francisco Public Library of Science 26.07.2021
Public Library of Science (PLoS)
Subjects
Algorithms
Analysis
Asymmetry
Economic aspects
Efficiency
Efficient markets
Executives
High frequency trading
High speed
Hypotheses
Information processing
Insider trading
Insider trading in securities
People and Places
Physical Sciences
Profits
Public information
Research and Analysis Methods
Securities markets
Social Sciences
Stock exchanges
Stock markets
Thailand
Bangkok Thailand
Online AccessGet full text
ISSN1932-6203
1932-6203
DOI10.1371/journal.pone.0255057

Cover

More Information
Summary:This paper asks whether algorithm traders (AT) mitigate insider trading profits in the Thai stock market over the period of 2010–2016. We find that in general it does but not in the case of buy side, big trades nor the executive trades. Our findings suggest that, to some extent, AT can take important role to increase an efficiency in stock market by processing the public information and incorporating it into price at ultra-fast speed. Additional robustness checks based on the instrumental variable approach confirm our findings.
Bibliography:ObjectType-Article-1
SourceType-Scholarly Journals-1
ObjectType-Feature-2
content type line 14
content type line 23
Competing Interests: No authors have competing interests.
ISSN:1932-6203
1932-6203
DOI:10.1371/journal.pone.0255057