Insider Trading, Herding Behaviour and Market Plungers in the British Horse–race Betting Market
Bibliographic Data
| ID | 9727244 |
|---|---|
| Authors | David Law (0000-0003-0560-229X), David R Law (0000-0002-9402-186X, Aberystwyth University), Dominic Peel (0000-0001-5281-2041, University of Wales Institute Cardiff), David A Peel |
| Year | 2002 |
| Volume | 69 |
| Issue | 274 |
| Pages | 327-338 |
| Publication date | 2002-05-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/1468-0335.00285 |
| OpenAlex | W2018256516 |
| Language | EN |
| Citations received | 5 |
Crafts [N. F. R. Crafts (1985) Economica , 52 , 295—304] suggested that a pronounced shortening of bookmaker odds in horse–race betting markets could indicate the presence of insider traders. This paper uses the Shin [H. S. Shin (1993) Economic Journal , 103 , 1141—53] measure of the incidence of insider trading at the beginning of the betting period (opening prices) and at the end of it (starting prices) to distinguish the shortening of odds caused by insider trading from that caused by herding behaviour. It turns out that significant positive betting returns are achieved when shortening odds are accompanied by a rise in the Shin measure; when they are accompanied by a fall, returns are negative, suggesting herd behaviour
Biology · Business · Economics · Financial economics · Geography · Herding · Horse racing · Insider · Insider trading · Logistic regression · Monetary economics · Odds · Political science · Race (biology) · Statistics · Consumer Market Behavior and Pricing · Finance · Gambling Behavior and Treatments · Law · Mathematics · Sports Analytics and Performance
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| Unique citing works | 5 |
|---|---|
| Citations per year | 0,25 |
| Citation span | 2006 - 2010 (5) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 5 |