Company securities trading policies: An empirical study

Abstract

On 1 January 2011, the Australian Securities Exchange (ASX) introduced into its listing rules a requirement for listed companies to adopt and disclose a policy relating to trading in the company’s securities by key management personnel during prohibited periods. The introduction of the requirement followed a report of the Corporations and Markets Advisory Committee which recommended that there should be “a more prescriptive approach to the trading by directors and executive officers in the securities of their company during sensitive periods”. However, little is known about the securities trading policies of companies prior to the introduction of the listing rules requiring such policies. In..