Journal of International Financial Markets, Institutions & Money, Forthcoming
45 Pages Posted: 19 Jun 2017
Date Written: May 10, 2017
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).
Keywords: insider trading, disclosure, public enforcement, crisis, contrarian investors
JEL Classification: D82, G14, G15
Suggested Citation: Suggested Citation
Aussenegg, Wolfgang and Jelic, Ranko and Ranzi, Robert, Corporate Insider Trading in Europe (May 10, 2017). Journal of International Financial Markets, Institutions & Money, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2987805