INSIDER TRADING RESTRICTIONS AND THE STOCK-MARKET - EVIDENCE FROM THEAMSTERDAM STOCK-EXCHANGE

Authors
KABIR R VERMAELEN T
Citation
R. Kabir et T. Vermaelen, INSIDER TRADING RESTRICTIONS AND THE STOCK-MARKET - EVIDENCE FROM THEAMSTERDAM STOCK-EXCHANGE, European economic review, 40(8), 1996, pp. 1591-1603
Citations number
20
Categorie Soggetti
Economics
Journal title
European economic review → ACNP
ISSN journal
00142921
Volume
40
Issue
8
Year of publication
1996
Pages
1591 - 1603
Database
ISI
SICI code
0014-2921(1996)40:8<1591:ITRATS>2.0.ZU;2-8
Abstract
This paper examines the effect of introducing insider trading restrict ions on the behaviour of the Amsterdam Stock Exchange. From 1987 on, i nsiders are no longer allowed to trade two months before an annual ear nings announcement. The results indicate that stocks became less liqui d (when liquidity is measured by trading volume) when insiders were no t allowed to trade. We also find some evidence that the introduction o f insider trading restrictions reduced the stock market's speed of adj ustment to positive earnings news.