The impact of inside information manipulation on the efficiency of financial markets : a case study of the amman stock exchange

Abstract EN

Through this study, we aim to know the impact of the exploitation of inside information on the efficiency of financial markets by applying to the Amman Stock Exchange, we used the descriptive approach in the theoretical side of the study by introducing the variables contained in the study, while on the applied side, we relied on a case study approach by studying the relationship between the returns of exploiting inside information and the returns of the ASE 100 index, and then deducing the effect of this on the efficiency of Amman Stock Exchange.

We concluded that the exploitation of inside information affects the efficiency of financial markets, and that insider trading by exploiting inside information can achieve higher returns than the market index, which are unfair returns, which violates the hypothesis of the efficiency of financial markets.