SOCIOLEGAL RESEARCH AND INSIDER TRADING IN AUSTRALIA

Insider trading was the subject of extensive political debate from 198 9 through to 1991, culminating in substantial amendments to the Corpor ations Law. The political climate for this legislative action was infl uenced by a high profile empirical study by Tomasic and Pentony assert ing that insider trading was both widespread and harmful. This study i s critically appraised with respect to a number of methodological issu es and in particular, questions are raised as to whether the inference s drawn from the evidence are justifiable. Alternative methods for emp irical research into the insider trading phenomenon are noted.