Insider trading restrictions and the stock market: Evidence from the Amsterdam Stock Exchange

Kabir, Rezaul and Vermaelen, Theo (1996) Insider trading restrictions and the stock market: Evidence from the Amsterdam Stock Exchange. European economic review, 40 (8). pp. 1591-1603. ISSN 0014-2921

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Abstract:	This paper examines the effect of introducing insider trading restrictions on the behaviour of the Amsterdam Stock Exchange. From 1987 on, insiders are no longer allowed to trade two months before an annual earnings announcement. The results indicate that stocks became less liquid (when liquidity is measured by trading volume) when insiders were not allowed to trade. We also find some evidence that the introduction of insider trading restrictions reduced the stock market's speed of adjustment to positive earnings news.
Item Type:	Article
Copyright:	© Elsevier
Faculty:	Management and Governance (SMG)
Research Group:	Finance and Accounting (F&A)
Link to this item:	http://purl.utwente.nl/publications/80226
Official URL:	http://dx.doi.org/10.1016/0014-2921(95)00037-2
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