UK Directors Trading: The Impact of Dealings in Smaller Firms
This paper reassesses the UK results of significant abnormal returns from directors trading for a new sample of directors trades 1984-1988, and finds that abnormal returns tend to be concentrated in smaller firms. When an appropriate benchmark portfolio is used, it is found that the significance of the abnormal returns is substantially reduced. The implication is that after allowing for a size effect, directors trading does not yield particularly high profits to either the directors themselves or to any outside investors mimicking those directors trades.
Other versions of this item:
- Gregory, Alan, et al, 1994. "UK Directors' Trading: The Impact of Dealings in Smaller Firms," Economic Journal, Royal Economic Society, vol. 104(422), pages 37-53, January.
- Adriana Korczak & Piotr Korczak & Meziane Lasfer, 2010.
"To Trade or Not to Trade: The Strategic Trading of Insiders around News Announcements,"
Journal of Business Finance & Accounting,
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- Nadia Linciano, 2003. "The Effectiveness of Insider Trading Regulation in Italy. Evidence from Stock-Price Run-Ups Around Announcements of Corporate Control Transactions," European Journal of Law and Economics, Springer, vol. 16(2), pages 199-218, September.
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