Insider Trading in the Swiss Stock Market

30 Pages Posted: 8 Feb 2008

See all articles by Andreas Zingg

Andreas Zingg

UBS Global Asset Management

Sebastian Lang

University of St. Gallen - Swiss Institute of Banking and Finance

Daniela Wyttenbach

University of St. Gallen - Swiss Institute of Banking and Finance

Multiple version iconThere are 2 versions of this paper

Date Written: January 2007

Abstract

The scope of offences that qualify as illegal insider trading is rather narrow in Switzerland compared to other countries. Therefore we investigate abnormal returns associated with management transactions in the Swiss stock market. We find that abnormal returns of insiders are concentrated on small firms. Trading volume affects the magnitude of abnormal returns. Evidence for the stealth trading hypothesis in the Swiss stock market is found. Furthermore, our results show that clustered transactions do not reflect stronger insider beliefs. We find no evidence for insiders exploiting news announcements. Finally, only outsiders who mimic small-volume transactions of insiders can earn abnormal returns.

Keywords: Insider trading, Market efficiency, Swiss stock market

JEL Classification: G14

Suggested Citation

Zingg, Andreas and Lang, Sebastian and Wyttenbach, Daniela, Insider Trading in the Swiss Stock Market (January 2007). Available at SSRN: https://ssrn.com/abstract=1091348 or http://dx.doi.org/10.2139/ssrn.1091348

Andreas Zingg (Contact Author)

UBS Global Asset Management ( email )

Gessnerallee 3-5
CH-8098 Zurich
Switzerland

Sebastian Lang

University of St. Gallen - Swiss Institute of Banking and Finance ( email )

Rosenbergstrasse 52
St. Gallen, CH-9000
Switzerland

Daniela Wyttenbach

University of St. Gallen - Swiss Institute of Banking and Finance ( email )

Rosenbergstrasse 52
St. Gallen, CH-9000
Switzerland

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