Insider trading in CVM sanctioning processes: Can compliance and conference calls reduce the problem?

Abstract Objective: This study aims to analyze the relationship between insider trading and institutional and informational determinants of companies, with emphasis on compliance activities and conference calls. Originality/value: The work contributes to the field of corporate governance by empirically examining how elements such as compliance and transparency practices affect defense standards, penalties, and types of insiders identified in Securities Commission (Comissão de Valores Mobiliá-rios [CVM]) sanctioning processes. The research is relevant given the growth of the Brazilian stock market and increasing participation of individual investors, reinforcing the importance of informational integrity. Design/methodology/approach: The research is descriptive and quantitative, with an analysis of 48 insider trading sanctioning processes judged by the CVM between 2010 and 2022. Dummy variables and statistical tests (proportion and difference of means) were used to compare groups with and without conference calls, as well as with high or low compliance index (CI). Results: The results indicate significant differences in defense strategies and types of insiders between the groups analyzed. Companies with conference calls had a lower incidence of allegations of manipulation and greater use of defenses associated with the absence of privileged information. Companies with a higher CI demonstrated more qualified defenses, such as legitimate trust and collegiality. Contribution/implication: The study reinforces the importance of com-pliance and transparency policies as preventive mechanisms for insider trading, promoting more ethical corporate environments aligned with the sustainable development goals (SDGs), especially regarding peace, justice, and effective institutions (SDG 16).