At first glance, the results also seem to indicate that insider trading tips tend to originate from top executives. Of course, CEOs generally have the most information. The charts also imply that Western Europeans are the biggest blabbermouths.
This study, however, is biased by the fact that it only includes insider traders who got caught. Some more likely conclusions: If you make a ton of money on insider trading, you’ll probably get caught. If you’re a top executive leaking tips to subordinates, you’ll probably get caught. Either Western Europeans are dumb and get caught most easily, or most traders are white people.
Kenneth Ahern. Information Networks: Evidence from Illegal Insider Trading Tips. (October 4, 2014) —SSRN