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Disclosure of mergers without regulatory restrictions: Insider trading in pre-1914 Germany

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  • Gerhard Kling

    (University of the West of England)

Abstract

In the pre-World-War I period, lacking regulatory restrictions allowed ‘hidden' mergers however, some companies disclosed information voluntarily. I analyze insider gains by investigating the share price behavior prior to merger announcements. When companies hid information, stocks exhibited positive abnormal returns prior to newspaper reports that uncovered hidden transactions.

Suggested Citation

  • Gerhard Kling, 2008. "Disclosure of mergers without regulatory restrictions: Insider trading in pre-1914 Germany," Economics Bulletin, AccessEcon, vol. 7(2), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-07g10015
    as

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    References listed on IDEAS

    as
    1. Keown, Arthur J & Pinkerton, John M, 1981. "Merger Announcements and Insider Trading Activity: An Empirical Investigation," Journal of Finance, American Finance Association, vol. 36(4), pages 855-869, September.
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    3. Morse, D, 1984. "An Econometric-Analysis Of The Choice Of Daily Versus Monthly Returns In Tests Of Information-Content," Journal of Accounting Research, Wiley Blackwell, vol. 22(2), pages 605-623.
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    6. Tilly, Richard, 1982. "Mergers, External Growth, and Finance in the Development of Large-Scale Enterprise in Germany, 1880–1913," The Journal of Economic History, Cambridge University Press, vol. 42(3), pages 629-658, September.
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    More about this item

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • N2 - Economic History - - Financial Markets and Institutions

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