Academics have hotly debated these justifications for years, and none of the three has achieved universal acclaim. This Article suggests another perspective: Prohibiting insider trading may enhance business decision-making in large corporations. With the exception of proponents of the Business Property view, analysts have focused on how an insider trading rule affects the national securities markets and traders in those markets. The internal governance of the large corporation is a different matter, one deserving separate consideration.
Robert J. Haft,
The Effect of Insider Trading Rules on the Internal Efficiency of the Large Corporation,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol80/iss5/3