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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. Ajeyo Banerjee & E. Woodrow Eckard, 2001. "Why Regulate Insider Trading? Evidence from the First Great Merger Wave (1897-1903)," American Economic Review, American Economic Association, vol. 91(5), pages 1329-1349, December.
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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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