Insider trading, news releases, and ownership concentration

• 成果类型: Article
• 署名作者: Fidrmuc, Jana P.; Goergen, Marc; Renneboog, Luc
• 署名单位: University of Warwick; Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam; University of Sheffield; Tilburg University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2006.01008.x
• 发表日期: 2006
• 页码: 2931-2973
• 关键词: security-price performance; stock returns; SHAREHOLDERS; management; COSTS

摘要

This paper investigates the market's reaction to U.K. insider transactions and analyzes whether the reaction depends on the firm's ownership. We present three major findings. First, differences in regulation between the U.K. and United States, in particular the speedier reporting of trades in the U.K., may explain the observed larger abnormal returns in the U.K. 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 and acquisitions and CEO replacements contain significantly less information.