Insider trading, news releases and ownership concentration

Jana Fidrmuc, Marc Goergen and Luc Renneboog ()

No 97, Discussion Paper from Tilburg University, Center for Economic Research

Abstract: This paper investigates the market's reaction to UK insider transactions and analyzes whether the reaction depends on the firm's ownership. There are three major findings. First, differences in regulation between the UK and US, in particular the speedier reporting of trades in the UK, may explain the observed larger abnormal returns in the UK. Second, ownership by directors and outside shareholders has an impact on the abnormal returns. Third, it is important to adjust for news released before directors' trades. In particular, trades preceded by news on mergers & acquisitions and CEO replacements contain significantly less information.

Keywords: insider; trading (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fin
Date: Written 2005
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Related works:
Working Paper: Insider trading, news releases and ownership concentration (2005)
Journal Article: Insider Trading, News Releases, and Ownership Concentration (2006)
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