The Sarbanes-Oxley act and informed trading in the options market: Evidence from share repurchase announcements Academic Article

abstract

• 2019 International Review of Finance Ltd. 2019 This study examines the informed options trading hypothesis before and after the implementation of the Sarbanes-Oxley Act (SOX). We find that informed option trading, as measured by implied volatility spreads, occurs only in the period before the enactment of this Act but disappears thereafter. Our results suggest that the SOX had a significant impact on informed trading in U.S. option markets.

authors

• Kolari, James

published proceedings

• INTERNATIONAL REVIEW OF FINANCE

altmetric score

• 1

author list (cited authors)

• Badshah, I., Koerniadi, H., & Kolari, J.

citation count

• 1

complete list of authors

• Badshah, Ihsan||Koerniadi, Hardjo||Kolari, James

publication date

• June 2021

publisher

• Wiley  Publisher

published in

• International Review of Finance  Journal

keywords

• Informed Trading
• Options
• Sarbanes-oxley Act
• Share Repurchase Announcements

Digital Object Identifier (DOI)

• 10.1111/irfi.12281

start page

• 645

end page

• 652

volume

• 21

issue

• 2

URL

• http://dx.doi.org/10.1111/irfi.12281