IDEAS home Printed from https://ideas.repec.org/p/wbs/wpaper/wpn05-03.html
   My bibliography  Save this paper

Insider Trading, News Releases and Ownership Concentration

Author

Listed:
  • Fidrmuc Jana P.
  • Goergen Marc
  • Renneborg Luc

Abstract

This paper investigates the market's reaction to U.K. insider transactions and analyzes whether the reaction depends on the firm's ownership. We present three major findings. First, differences in regulation between the U.K. and United States, in particular the speedier reporting of trades in the U.K., may explain the observed larger abnormal returns in the U.K. Second, ownership by directors and outside shareholders has an impact on the abnormal returns. Third, it is important to adjust for news released before directors' trades. In particular, trades preceded by news on mergers and acquisitions and CEO replacements contain significantly less information.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Fidrmuc Jana P. & Goergen Marc & Renneborg Luc, 2005. "Insider Trading, News Releases and Ownership Concentration," Working Papers wpn05-03, Warwick Business School, Finance Group.
  • Handle: RePEc:wbs:wpaper:wpn05-03
    as

    Download full text from publisher

    File URL: http://web.warwick.ac.uk/fac/soc/financeRepec/Repec/2005/FidrmucGoergenRenneboog2005ITNROC.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Scholes, Myron & Williams, Joseph, 1977. "Estimating betas from nonsynchronous data," Journal of Financial Economics, Elsevier, vol. 5(3), pages 309-327, December.
    2. Faccio, Mara & Lasfer, M. Ameziane, 2000. "Do occupational pension funds monitor companies in which they hold large stakes?," Journal of Corporate Finance, Elsevier, vol. 6(1), pages 71-110, March.
    3. Jaffe, Jeffrey F, 1974. "Special Information and Insider Trading," The Journal of Business, University of Chicago Press, vol. 47(3), pages 410-428, July.
    4. Alexander Dyck & Luigi Zingales, 2004. "Private Benefits of Control: An International Comparison," Journal of Finance, American Finance Association, vol. 59(2), pages 537-600, April.
    5. 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.
    6. repec:bla:joares:v:25:y:1987:i:1:p:1-48 is not listed on IDEAS
    7. repec:bla:jbfnac:v:24:y:1997:i:3:p:309-342 is not listed on IDEAS
    8. Franks, Julian & Mayer, Colin & Renneboog, Luc, 2001. "Who Disciplines Management in Poorly Performing Companies?," Journal of Financial Intermediation, Elsevier, vol. 10(3-4), pages 209-248, July.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbs:wpaper:wpn05-03. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rong Leng) The email address of this maintainer does not seem to be valid anymore. Please ask Rong Leng to update the entry or send us the correct email address. General contact details of provider: http://edirc.repec.org/data/fewaruk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.