Germany's New Insider Law: The Empirical Evidence after the First Year

摘要: . This paper investigates insider trading activities in German stocks during the first year following implementation of new Insider Law on 1 July 2002. It can be observed that insiders act as contrarian investors. They buy after prices have fallen and sell risen. In general, trades are very profitable. A typical stock purchased by an yields abnormal return almost 3 per cent 25 days transaction. contrast, a has been sold achieves nearly −3 over same time period. Outsiders who copy transactions achieve returns. Abnormal returns remain substantial even transaction costs. The results suggest which trade do not seem to semi-strong efficient.