We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
An Empirical Analysis of Legal Insider Trading in The Netherlands.
- Authors
Degryse, Hans; Jong, Frank; Lefebvre, Jérémie
- Abstract
In this paper, we employ a registry of legal insider trading for Dutch listed firms to investigate the information content of trades by corporate insiders. Using a standard event-study methodology, we examine short-term stock price behavior around trades. We find that purchases are followed by economically large abnormal returns. This result is strongest for purchases by top executives and for small market capitalization firms, which is consistent with the hypothesis that legal insider trading is an important channel through which information flows to the market. We analyze also the impact of the implementation of the Market Abuse Directive (European Union Directive 2003/6/EC), which strengthens the existing regulation in the Netherlands. We show that the new regulation reduced the information content of sales by top executives.
- Subjects
NETHERLANDS; INSIDER trading in securities; SECURITIES trading laws; STOCK prices; PRICES of securities; SMALL capitalization stocks
- Publication
De Economist (0013-063X), 2014, Vol 162, Issue 1, p71
- ISSN
0013-063X
- Publication type
Article
- DOI
10.1007/s10645-013-9222-4