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Corporate Insider Trading in Europe

Journal of International Financial Markets, Institutions & Money, Forthcoming

45 Pages Posted: 19 Jun 2017  

Wolfgang Aussenegg

Vienna University of Technology

Ranko Jelic

University of Sussex - School of Business Management and Economics

Robert Ranzi

Vienna University of Technology

Date Written: May 10, 2017

Abstract

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

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

Wolfgang Aussenegg

Vienna University of Technology ( email )

Theresianumgasse 27
Vienna, A-1040
Austria
+43 1 58801 33082 (Phone)
+43 1 58801 33098 (Fax)

HOME PAGE: http://www.imw.tuwien.ac.at/fc/people/wolfgang_aussenegg/

Ranko Jelic (Contact Author)

University of Sussex - School of Business Management and Economics ( email )

Falmer, Brighton BN1 9SL
United Kingdom
+441273872597 (Phone)

Robert Ranzi

Vienna University of Technology ( email )

Karlsplatz 13
Vienna
Austria
+43 1 58801 33086 (Phone)
+43 1 58801 33098 (Fax)

HOME PAGE: http://www.imw.tuwien.ac.at/fc

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