Reactions to corporate insider’s transactions Do legal stock market disclosure rules have an impact英文精品课件.pdf

Eur J Law Econ (2015) 40:247–272 DOI 10.1007/s10657-014-9475-7 Reactions to corporate insider’s transactions: Do legal stock market disclosure rules have an impact? Caspar Rose • Nicolai Søpstad Published online: 29 November 2014 Springer Science+Business Media New York 2014 Abstract We test the impact on security prices of top manager’s requirement’s to disclose their own share transactions in the firm. Specifically we study whether buy or sales transactions convey relevant information for market participants thereby studying the effects of legal stock market disclosure rules. Based on a compre- hensive collection of stock market announcements from Danish CEOs and chairmen we find that insiders’ transactions influence share prices. However, it appears that there is a surprisingly difference, as buy transactions by chairmen have a much higher impact compared to CEO transactions, which to our knowledge have not been noticed already by others. Thus, our event study shows that the Danish stock market seems to be efficient in the semi-strong from. Keywords Disclosure rules Insider’s transactions Event study Signaling and stock market efficiency JEL Classification K10 K14 K22 M20 G30 1 Introduction ‘‘The combination of high activity and a high buy to sale ratio shows that insiders have good faith in the future development of their C. Rose (&) N. Søpstad Department of International Economics and Management, Center for Corporate Governance, Copenhagen Business School, Porcelænshaven 24A, 1. sal, 2000 Frederiksberg, Denmark e-mail: @cbs.dk 123 248 Eur J Law Econ (2015) 40:247–272 respective companies’’ 1 (Tyvand, Dagens Næringsliv, 26th of June