Finance
Insider Trading in Germany - Do Corporate Insiders Exploit Inside Information?
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Björn M. Dymke
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Andreas Walter
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.
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Recommended citation
Dymke BM, Walter A (2008). Insider Trading in Germany - Do Corporate Insiders Exploit Inside Information?. BuR - Business Research, Vol. 1, Iss. 2, pp. 188-205,
URN: urn:nbn:de:0009-20-16524
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