Insider Trading in Germany — Do Corporate Insiders Exploit Inside Information?

Dymke, Björn M.

doi:10.1007/bf03343533

Cited by 29 publications

(22 citation statements)

References 40 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Klinge et al (2005) take event clustering into account and use non-overlapping observations. Dymke and Walter (2006) investigate the exploitation of private information by insiders, and Betzer and Theissen (2007a) research the relationship between excess returns and reporting delay.…”

mentioning

confidence: 99%

Market Efficiency Reloaded: Why Insider Trades do not Reveal Exploitable Information

Dickgiesser

Kaserer

2010

German Economic Review

View full text Add to dashboard Cite

Insider trading studies related to the German market have emphasized that outside investors may earn excess returns by mimicking the transactions of corporate directors. Such a result, provided that it holds, would constitute a serious violation of the efficient market hypothesis. The results presented in this paper, though, show that this anomaly is mainly caused by a subset of stocks with high arbitrage risk as measured by their idiosyncratic volatility. This restrains arbitrageurs from engaging in otherwise profitable and price-correcting trades. As arbitrage risk is positively related to a stock's bid/ask-spread, we show that the information conveyed by insider trades cannot be exploited in terms of generating abnormal returns once these transaction costs are taken into account. We conclude that the market's under-reaction to reported insider trades can mainly be explained by the cost associated with risky arbitrage. Our findings provide evidence that the German stock market is efficient with respect to insider trades in the sense that prices reflect publicly available information to the point where the marginal benefit of acting on information exceeds marginal costs.JEL Classification: G11, G14

show abstract

mentioning

confidence: 99%

Market Efficiency Reloaded: Why Insider Trades do not Reveal Exploitable Information

Dickgiesser

Kaserer

2010

German Economic Review

View full text Add to dashboard Cite

show abstract

“…Il existe une littérature abondante, ancienne et récente, sur les opérations d'initiés [voir Jaffe, 1974;Finnerty, 1976;Seyhun, 1986;Ke et al, 2003;Etebari et al, 2004;Fidrmuc et al, 2006;Dymke et Walter, 2008;Aktas et al, 2008;Kallunki et al, 2009; Betzer et Theissein, 2009; Betzer et Theissein, 2010;Kolasinski et Li, 2010; etc.]. La plupart de ces recherches ont conclu que les initiés réalisent des rendements anormaux en achetant ou en vendant légalement les titres de leurs entreprises.…”

Section: Revue De La Littératureunclassified

“…Par exemple, selon, Dymke et Walter (2008), en considérant une période de 20 jours entourant la date de l'opération, les initiés des entreprises allemandes obtiennent un rendement anormal cumulé de 4,3 % sur les achats et de -1,47 % sur les ventes. Les administrateurs réalisent un profit de plus de 4 % sur les opérations (achats) non suivies de communiqués de presse ad hoc, alors même que sur ce genre d'opérations, les directeurs et d'autres initiés n'obtiennent que respectivement un rendement de 1,81 % et 2,12 %.…”

Section: Revue De La Littératureunclassified

Improving Municipal Information and Knowledge Management Capabilities: Case Study

Ekionea

Fillion

Koffi

2012

J. Info. Know. Mgmt.

View full text Add to dashboard Cite

AcknowledgementsThere is a great deal of work to coordinate and administer all of the activities of the Atlantic Schools of Business Conference. In particular, the coordination of activities from the call for papers to the acceptance process is very extensive. We would like to thank the many people involved to help us with this central aspect of the conference. Thanks to Ms. Amanda Strongman who took on the initiative and perseverance to automate the paper submission process using Easy Chair this year. The use of this tool provided many insights from an organizing perspective that were invaluable. We would also like to thank the track chairs (see next section for a track chair list) who provided timely and helpful feedback about how to improve the process and managed the review process for the papers submitted to their tracks. Their commitment to getting reviews for all papers and providing feedback to authors involved an immense amount of work which we are thankful they took on. Finally, we would like to thank all the reviewers who took the time to review papers in their area of expertise and offer constructive feedback to authors to help improve their work. This process relies on volunteers from across the region. We are grateful that the spirit of academic development and achievement is alive and well! Your contributions in this area make the ASB conference possible! Sincerely, Wendy R. Carroll Conference Chair Atlantic Schools of Business Executive Stream PageAccounting 1 Business Communications 13 Business History 50Finance 84 Human Resources and Industrial Relations 197 Information Systems 258 Management Education 307Marketing 323 Organizational Theory 384Strategy 430 ASB Conference 2011 Proceedings Accounting StreamUniversity of PEI IntroductionCorporate Social Responsibility (CSR) has received growing attention in the last several decades. Its impact dramatically reached the top echelons of the United Nations when UN Secretary-General Kofi Annan proposed The Global Compact at the World Economic Forum in Davos, Switzerland in 1999 (Bitanga and Bridwell, 2010). The Global Compact has grown to encompass more than 8,700 corporate participants and others stakeholders, including over 7,700 businesses in 130 countries around the world (United Nations Global Compact, 2011a).The UN Global Compact is a voluntary initiative that relies on public accountability, transparency, and enlightened corporate self-interest. The basic idea is that the voluntary involvement of companies in the areas of human rights, labor rights, environmental degradation, and anti-corruption can encourage private innovation and concern within these areas in a manner that regulation has been unable to adequately achieve, thereby hastening the emergence of a more sustainable and just future (Kell and Levin, 2002).The benefits for companies voluntarily affiliating with the UN Global Compact have been little documented from an empirical perspective. A survey by Cetindamar and Husoy (2007) documented the motivations of some firms for adherin...

show abstract

“…Dymke and Walter [24] relate insider transactions to adhoc news disclosures. They document for a sample of 3,079 German deals that insiders trade on inside information.…”

Section: Literature Reviewmentioning

confidence: 99%

Legal Corporate Insider Trading and the Price Impact of Private Information: Evidence for Germany

Aussenegg

Ranzi²

2008

TOBJ

View full text Add to dashboard Cite

This study examines the information value of corporate insider trading disclosures for a sample of 490 German companies. Our results indicate that insiders selling stocks in their own company reveal negative information about the intrinsic firm value. This is especially the case for large volume sale transactions. In addition, stock prices of smaller companies react stronger to insider transactions. Furthermore, insiders tend to time their transactions, selling shares after stock price increases and buying shares after stock price decreases.

show abstract

Insider Trading in Germany — Do Corporate Insiders Exploit Inside Information?

Abstract: Abstract

Cited by 29 publications

References 40 publications

Market Efficiency Reloaded: Why Insider Trades do not Reveal Exploitable Information

Market Efficiency Reloaded: Why Insider Trades do not Reveal Exploitable Information

Improving Municipal Information and Knowledge Management Capabilities: Case Study

Legal Corporate Insider Trading and the Price Impact of Private Information: Evidence for Germany

Contact Info

Product

Resources

About