Insider Trading in Germany - Do Corporate Insiders Exploit Inside Information?
2nd Annual Conference on Empirical Legal Studies Paper
BuR Business Research Journal, Vol. 1, No. 2, December 2008
19 Pages Posted: 20 Feb 2007
Date Written: July 13, 2007
Abstract
Our study focuses on the question whether corporate insiders in Germany exploit inside information while trading in their company's stock. In contrast to prior international studies, which are not able to link insider transactions to a formal definition of inside information, we relate insider transactions to subsequent releases of inside information via ad-hoc news disclosures. We find evidence that corporate insiders as a group seem to trade on inside information. Moreover, members of the supervisory board seem to be most active in exploiting inside information since they realize exceptionally high profits with their frequent front-running transactions.
Keywords: insider trading, inside information, §15a WpHG, German stock market, regulation of financial markets
JEL Classification: G11, G14, G15, G34, D82
Suggested Citation: Suggested Citation
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