ITEM METADATA RECORD
Title: An empirical analysis of legal insider trading in the Netherlands
Authors: Degryse, Hans ×
de Jong, Frank
Lefebvre, Jeremie #
Issue Date: 2014
Series Title: De Economist vol:162 issue:1 pages:71-103
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.
URI: 
ISSN: 0013-063X
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Center Finance, Leuven
× corresponding author
# (joint) last author

Files in This Item:
File Description Status SizeFormat
AnEmpiricalAnalysis.pdf Published 408KbAdobe PDFView/Open Request a copy

These files are only available to some KU Leuven Association staff members

 




All items in Lirias are protected by copyright, with all rights reserved.

© Web of science