Insider trading restrictions and the stock market: Evidence from the Amsterdam Stock Exchange
نویسنده
چکیده
This paper examines the effect of introducing insider tratlin~; restrictions on the behaviour of the Amsterdam Stock Exchange. From 198'7 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. JEL classification: G 14 Keyword.s': Insider trading: Regulation: Liquidity
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