Insider Trading, News Releases and Ownership Concentration

Insider Trading, News Releases and Ownership Concentration

Jana Fidrmuc, Marc Goergen, Luc Renneboog

Series number :

Serial Number: 

Date posted :

August 01 2005

Last revised :

SSRN Share


  • insider trading • 
  • directors? share dealings • 
  • Corporate governance • 
  • ownership and control

This paper investigates the market's reaction to UK insider transactions and analyzes whether the reaction depends on the firm's ownership. There are three major findings. First, differences in regulation between the UK and US, in particular the speedier reporting of trades in the UK, may explain the observed larger abnormal returns in the UK.

Second, ownership by directors and outside shareholders has an impact on the abnormal returns. Third, it is important to adjust for news released before directors' trades. In particular, trades preceded by news on mergers & acquisitions and CEO replacements contain significantly less information.

Published in

Published in: 
Publication Title: 
Journal of Finance
2006, Vol. LXI, No. 6


Real name:
Jana Fidrmuc