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Insider Trading in the Swiss Stock Market

Author

Listed:
  • Andreas Zingg
  • Sebastian Lang
  • Daniela Wyttenbach

Abstract

Many studies on insider trading are based on data of the U.S. market and conclude that insiders can earn abnormal profits. This paper examines for the Swiss stock market whether insiders can earn abnormal profits and whether outsiders can make abnormal profits by mimicking the transactions of insiders. We find significant abnormal returns for insider trading, as well as some evidence for profitable mimicking strategies. We can reject the strong form Efficient Market Hypothesis for the Swiss stock market. However, with regard to the semi-strong form Efficienct Market Hypothesis, it remains unclear whether it is true for the Swiss stock market.

Suggested Citation

  • Andreas Zingg & Sebastian Lang & Daniela Wyttenbach, 2007. "Insider Trading in the Swiss Stock Market," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 143(III), pages 331-362, September.
  • Handle: RePEc:ses:arsjes:2007-iii-4
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    File URL: http://www.sjes.ch/papers/2007-III-4.pdf
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    References listed on IDEAS

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    8. Fama, Eugene F, et al, 1969. "The Adjustment of Stock Prices to New Information," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 10(1), pages 1-21, February.
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    Citations

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    Cited by:

    1. Chirkova, Elena & Petrov, Vladislav, 2015. "The Diagnosis of the Insider Trading During the Conflict of Shareholders of “VimpelCom” in 2005-2013," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 2, pages 151-173.
    2. Kaspar Dardas & Andre Güttler, 2011. "Are directors’ dealings informative? Evidence from European stock markets," Financial Markets and Portfolio Management, Springer;Swiss Society for Financial Market Research, vol. 25(2), pages 111-148, June.

    More about this item

    Keywords

    Insider trading; event study; management transactions; efficient market hypothesis;

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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