TY - UNPB
T1 - Insider Trading, News Releases and Ownership Concentration
AU - Fidrmucova, J.
AU - Goergen, M.
AU - Renneboog, L.D.R.
N1 - Pagination: 49
PY - 2005
Y1 - 2005
N2 - 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.
AB - 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.
KW - corporate governance
KW - directors' share dealings
KW - ownership and control
KW - insider trading
M3 - Discussion paper
VL - 2005-97
T3 - CentER Discussion Paper
BT - Insider Trading, News Releases and Ownership Concentration
PB - Finance
CY - Tilburg
ER -