Plausibly Exogenous [1412] - Expected Penalty (12/13/2023)
LHS Variable
Insider trading
RHS Variable
Expected penalty
Source of Exogenous Variation
2014 U.S. Court of Appeals for the Second Circuit ruling on United States v. Newman and Chiasson (13-1837-cr(L)), the Newman ruling hereafter, which significantly narrowed the application of insider trading laws and was subsequently used as a precedent to redeem several allegedly guilty individuals
- Kacperczyk and Pagnotta (2023), “Legal Risk and Insider Trading”