The Profitability of Insider Trades in the Dutch Stock Market

Biesta, Mathijs A.; Doeswijk, Ronald Q.; Donker, Han

doi:10.2139/ssrn.498042

Cited by 13 publications

(10 citation statements)

References 8 publications

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“…For example, whilst some studies report statistically significant price effects around announcement days in Austria (Fidrmuc et al, 2013) and Italy (Dardas and Guttler, 2011;Bajo and Petracci, 2006), others report no statistically significant abnormal returns in these countries. 7 Overall, the evidence for Germany (Klinge et al, 2005;Dymke and Walter, 2008;Aussenegg and Ranzi, 2008;Betzer and Theissen, 2009;Dardas and Guttler, 2011), Belgium (Fidrmuc et al, 2013) and Netherlands (Aktas et al, 2007;Dardas and Guttler, 2011;Fidrmuc et al, 2013;Cziraki et al, 2014;Biesta et al, 2003) is more conclusive in suggesting statistically significant abnormal returns around the announcement of insider trades. A rare study on Switzerland also suggests statistically significant price effects (Zingg et al, 2007).…”

Section: Price Effect Of Legal Insider Tradingmentioning

confidence: 99%

Corporate insider trading in Europe

Aussenegg¹,

Jelic

Ranzi³

2018

Journal of International Financial Markets, Institutions and Mo

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We analyse stock price behaviour around the disclosure of corporate insider transactions after the introduction of the Market Abuse Directive (MAD). Ranking according to our Insider Trading Enforcement (ITE) index highlights significant differences in the MAD enforcement between French and German legal origin countries. We document contrarian behaviour of insiders in all of the sample countries. Insiders reveal significant information to the public through both their purchases and sales. The price impact of the insiders' transactions is particularly strong in countries with a lower ITE index (i.e. weaker public enforcement).

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Section: Price Effect Of Legal Insider Tradingmentioning

confidence: 99%

Corporate insider trading in Europe

Aussenegg¹,

Jelic

Ranzi³

2018

Journal of International Financial Markets, Institutions and Mo

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“…The first is by Biesta, Doeswijk, and Donker (2003). Although the aim of their paper is to assess the profitability of insider's portfolio based on a holding period of six months, they provide as well results on short term stock price movement after insider trading.…”

Section: Related Literaturementioning

confidence: 99%

An Empirical Analysis of Legal Insider Trading in The Netherlands

2013

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In this paper, we employ a registry of legal insider trading for Dutch listed firms to investigate the information content of trades by corporate insiders. Using a standard event-study methodology, we examine short-term stock price behavior around trades. We find that purchases are followed by economically large abnormal returns. This result is strongest for purchases by top executives and for small market capitalization firms, which is consistent with the hypothesis that legal insider trading is an important channel through which information flows to the market. We analyze also the impact of the implementation of the Market Abuse Directive (European Union Directive 2003/6/EC), which strengthens the existing regulation in the Netherlands. We show that the new regulation reduced the information content of sales by top executives.

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“…However, it is observed that the vast majority of previous work focuses on U.S. and European capital markets (e.g. Aktas et al 2008;Biesta at al. 2003;Del Brio et al 2002;Fidrmuc et al 2006;Gregory et al 1997).…”

Section: Introductionmentioning

confidence: 99%

The impact of related party transactions on firm value

Aboud

Diab

Hamdy

2019

JFRA

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Purpose The purpose of this study is to address the impact of the related party transactions (RPTs) on firm value. The authors bring evidence from a usually ignored empirical setting: an African emerging market. Design/methodology/approach In particular, the authors focus on companies listed on the Egyptian stock market using a sample of EGX 30 from 2012 to 2017. Findings Unlike the literature, the authors find no significant relationship between RPTs and market value. Practical implications This research provides insights for policymakers and other interested parties concerning the perception of RPTs in Egypt. Originality/value The reported different findings of this study assure the intermediary role of the context and the local culture in the relationship between RPTs and firm value, in contrast to the negative view that is mostly reported in the literature.

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The Profitability of Insider Trades in the Dutch Stock Market

Cited by 13 publications

References 8 publications

Corporate insider trading in Europe

Corporate insider trading in Europe

An Empirical Analysis of Legal Insider Trading in The Netherlands

The impact of related party transactions on firm value

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