The performance of corporate legal insiders ...
Document type :
Compte-rendu et recension critique d'ouvrage
Title :
The performance of corporate legal insiders on the French stock market
Author(s) :
Nivelleau de La Brunière, Stanislas [Auteur]
Haye, Jean-Come [Auteur]
Mazza, Paolo [Auteur]
Lille économie management - UMR 9221 [LEM]
Haye, Jean-Come [Auteur]
Mazza, Paolo [Auteur]
Lille économie management - UMR 9221 [LEM]
Journal title :
International Review of Law and Economics
Pages :
105880
Publisher :
Elsevier [1981-....]
Publication date :
2020-03
ISSN :
0144-8188
English keyword(s) :
Insider
French stock market
Simulation
Trader’s behavior
Position
French stock market
Simulation
Trader’s behavior
Position
HAL domain(s) :
Sciences de l'Homme et Société/Gestion et management
English abstract : [en]
This paper aims to examine the performance of legal insiders on the French market, from January 2011 to December 2017. We focus on purchase transactions in order not to face the many reasons that can force investors to ...
Show more >This paper aims to examine the performance of legal insiders on the French market, from January 2011 to December 2017. We focus on purchase transactions in order not to face the many reasons that can force investors to close their position. Our results suggest that insiders generate an excess return over the SBF120 index on the short run. An outsider mimicking insiders’ actions can generate similar profits. This implies that their informational advantage is rather short-lived. However, both of them fail to beat simulated random investors in general. Our findings highlight that the outperformance is rather stock-specific: insiders beat random investors for some stocks. We also disentangle management from non-management insiders and show that non-management insiders generate a lower average excess return than management insiders. Our simulation setup however shows that none of the groups is able to beat random investors for all the stocks, even if management insiders outperform the simulated series in more cases than non-management insiders.Show less >
Show more >This paper aims to examine the performance of legal insiders on the French market, from January 2011 to December 2017. We focus on purchase transactions in order not to face the many reasons that can force investors to close their position. Our results suggest that insiders generate an excess return over the SBF120 index on the short run. An outsider mimicking insiders’ actions can generate similar profits. This implies that their informational advantage is rather short-lived. However, both of them fail to beat simulated random investors in general. Our findings highlight that the outperformance is rather stock-specific: insiders beat random investors for some stocks. We also disentangle management from non-management insiders and show that non-management insiders generate a lower average excess return than management insiders. Our simulation setup however shows that none of the groups is able to beat random investors for all the stocks, even if management insiders outperform the simulated series in more cases than non-management insiders.Show less >
Language :
Anglais
Popular science :
Non
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