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Rentabilidad a Corto Plazo de los Insiders en los Mercados Español y Británico

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Author Info
Del Brio, Esther () (Departamento de Administración y Economía de la Empresa, Facultad de Economía y Empresa, Universidad de Salamanca)
Elías Tobar, José (Departamento de Administración y Economía de la Empresa, Facultad de Economía y Empresa, Universidad de Salamanca)

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Abstract

El estudio de las rentabilidades de las operaciones de los insiders corporativos es un tema vigente de investigación por sus importantes implicaciones tanto científicas (sobre la eficiencia del mercado) como políticas (efectividad de la regulación del insider trading). El presente trabajo trata de analizar el comportamiento de los insiders en dos mercados de valores situados en el mismo entorno geográfico, pero caracterizados por dos marcos legales diferentes, como son España y Reino Unido. A través de un estudio de eventos, analizamos de forma simultánea las operaciones de inversión individual de directivos empresariales en ambos mercados y analizamos sus rentabilidades en el corto plazo. Usando el estadístico estandarizado documentado en Dodd y Warner (1983), encontramos que los insiders de ambos países obtienen rentabilidades superiores tanto en ventas como en compras, siendo más significativas las compras, resultado que es consistente con la mayor parte de la literatura. Por último, se detecta una reacción mucho mayor en el mercado británico en las fechas inmediatamente posteriores a las operaciones de compra de los insiders, lo cual podría apoyar las tesis de Manne (1966) sobre la mayor rapidez en la incorporación de la información a los precios a través de las operaciones de insiders. The investigation of the returns associated to corporate insiders transactions is an outstanding topic nowadays due to its implications on both academia research (due to its influence on market efficiency) and political issues (lack of effectiveness of insider trading regulation). The current paper attempts to analyse insiders’ behaviour in two European stock markets, located in the same geographical area but characterised by different legal environments, such as UK and Spain. By using the event studies methodology, we simultaneously study insider trading profitability in both markets in the short term. By applying Dodd and Warner’s (1983) standardised test, we detect that insiders in both countries obtained abnormal returns in both their sales and purchases, although purchases seem to have a bigger information content, supporting wide previous literature. Finally, we may highlight that the higher market reaction detected in the Uk market for purchases in the post-event period seems to corroborate Manne´s (1966) thesis on the positive effects of insider trading which enables stock prices to rapidly impound insiders’ information.

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Paper provided by Interuniversitary Doctorate Program "New Trends on Business Administration", Universities of Valladolid, Burgos and Salamanca (Spain). Programa de Doctorado Interuniversitario "Nuevas Tendencias en Dirección de Empresas", Universidades de Valladolid, Burgos y Salamanca (España). in its series Documentos de Trabajo "Nuevas Tendencias en Dirección de Empresas". Working Papers "New Trends on Business Administration". with number 2005-10.

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Length: 26 pages
Date of creation: Dec 2005
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Handle: RePEc:ntd:wpaper:2005-10

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Related research
Keywords: insider trading rentabilidades anormales Europa estudio de eventos estadístico estandarizado corto plazo. insider trading abnormal returns Europe event studies standardised test short term.

Find related papers by JEL classification:
G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies

References listed on IDEAS
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  1. Jeffrey F. Jaffe, 1974. "The Effect of Regulation Changes on Insider Trading," Bell Journal of Economics, The RAND Corporation, vol. 5(1), pages 93-121, Spring. [Downloadable!] (restricted)
  2. Madura, Jeff & Wiant, Kenneth J, 1995. "Information Content of Bank Insider Trading," Applied Financial Economics, Taylor and Francis Journals, vol. 5(4), pages 219-27, August. [Downloadable!] (restricted)
  3. Seyhun, H Nejat, 1988. "The Information Content of Aggregate Insider Trading," Journal of Business, University of Chicago Press, vol. 61(1), pages 1-24, January. [Downloadable!] (restricted)
  4. Dodd, Peter & Warner, Jerold B., 1983. "On corporate governance : A study of proxy contests," Journal of Financial Economics, Elsevier, vol. 11(1-4), pages 401-438, April. [Downloadable!] (restricted)
  5. Beck, Thorsten & Levine, Ross & Loayza, Norman, 2000. "Finance and the sources of growth," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 261-300. [Downloadable!] (restricted)
    Other versions:
  6. Slovin, Myron B. & Sushka, Marie E. & Polonchek, John A., 1991. "Restructuring transactions by bank holding companies: The valuation effects of sale-and-leasebacks and divestitures," Journal of Banking & Finance, Elsevier, vol. 15(2), pages 237-255, April. [Downloadable!] (restricted)
  7. Alan Gregory & John Matatko & Ian Tonks, 1997. "Detecting Information from Directors' Trades: Signal Definition and Variable Size Effects," Journal of Business Finance & Accounting, Blackwell Publishing, vol. 24(3), pages 309-342. [Downloadable!] (restricted)
  8. Leslie A. Jeng & Andrew Metrick & Richard Zeckhauser, . "Estimating the Returns to Insider Trading," Rodney L. White Center for Financial Research Working Papers 19-99, Wharton School Rodney L. White Center for Financial Research. [Downloadable!]
  9. Seyhun, H Nejat, 1990. "Do Bidder Managers Knowingly Pay Too Much for Target Firms?," Journal of Business, University of Chicago Press, vol. 63(4), pages 439-64, October. [Downloadable!] (restricted)
  10. 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 855-69, September. [Downloadable!] (restricted)
  11. Lin, Ji-Chai & Howe, John S, 1990. " Insider Trading in the OTC Market," Journal of Finance, American Finance Association, vol. 45(4), pages 1273-84, September. [Downloadable!] (restricted)
  12. Demirguc-Kunt, Asli & Maksimovic, Vojislav, 2000. "Funding growth in bank-based and market-based financial systems : evidence from firm level data," Policy Research Working Paper Series 2432, The World Bank. [Downloadable!]
    Other versions:
  13. Lakonishok, Josef & Lee, Inmoo, 2001. "Are Insider Trades Informative?," Review of Financial Studies, Oxford University Press for Society for Financial Studies, vol. 14(1), pages 79-111.
  14. Bettis, J. C. & Coles, J. L. & Lemmon, M. L., 2000. "Corporate policies restricting trading by insiders," Journal of Financial Economics, Elsevier, vol. 57(2), pages 191-220, August. [Downloadable!] (restricted)
  15. John, Kose & Lang, Larry H P, 1991. " Insider Trading around Dividend Announcements: Theory and Evidence," Journal of Finance, American Finance Association, vol. 46(4), pages 1361-89, September. [Downloadable!] (restricted)
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