After insider trading regulations become stricter, insiders partially substitute trades in their own stocks with informed trades in peer stocks. Using a uniquely constructed dataset of trades by corporate insiders in all stocks, we find that insiders are 20% more likely to trade in peer stocks...

This paper studies how insider trading intensity is affected by the joint effects of competition and regulation. Prior theoretical research has found that, in the absence of regulation, more insiders leads to more insider trading. We show that optimal regulation, however, features detection...