Date of Award
5-2018
Degree Type
Report
Degree Name
Master of Science (MS)
Department
Economics and Finance
Committee Chair(s)
Ben Blau
Committee
Ben Blau
Committee
Tyler Brough
Abstract
On April 2, 2012, Congress passed the Stop Trading on Congressional Knowledge (STOCK) Act. The purpose of this legislation was to enhance transparency among the financial investments of Congress members, congressional staffers, and other government employees. One year later, an amendment was passed which no longer required staffers or government employees to publish their holdings online citing “national security”. Treating this event as a natural experiment, I examine whether insider trading occurred in the days leading up to and through the signing of the law by President Obama. In general, I find that portfolios of the 50 most commonly held stocks by Congress significantly outperformed the market in the days leading up to the amendment. Additionally, I find that political affiliation and the number/amount of congressional holdings provided no meaningful impact on these returns.
Recommended Citation
Wilson, Josh, "Insider trading and the STOCK Act Amendment" (2018). All Graduate Plan B and other Reports, Spring 1920 to Spring 2023. 1201.
https://digitalcommons.usu.edu/gradreports/1201
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