The impact of the financial crisis on insider trading profitability in Belgium
- Author
- Debby Van Geyt (UGent) , Philippe Van Cauwenberge (UGent) and Heidi Vander Bauwhede (UGent)
- Organization
- Abstract
- The 2007 global financial crisis led to a chaotic financial environment characterized by highly uncertain and volatile stock markets. This created additional uncertainty about the fundamental value of shares and potentially increased the benefit of inside information. In this paper, we use event study methodology to examine whether Belgian corporate insiders were able to benefit from these turbulent market conditions. Given the large weight of financial institutions, the Belgian stock market was especially vulnerable to the financial crisis and provides an interesting environment to test this hypothesis. Our results show that, while insiders are generally able to earn abnormal returns, these returns are significantly higher during the years of the financial crisis.
- Keywords
- MARKET-EFFICIENCY, INFORMATION ASYMMETRY, CORPORATE GOVERNANCE, DISCLOSURE, OWNERSHIP, RETURNS, STOCK, FIRMS, COMPENSATION, BANKRUPTCY, insider trading, equity markets, market efficiency, information asymmetry, financial crisis, abnormal returns, event study
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Citation
Please use this url to cite or link to this publication: http://hdl.handle.net/1854/LU-3206593
- MLA
- Van Geyt, Debby, et al. “The Impact of the Financial Crisis on Insider Trading Profitability in Belgium.” JOURNAL OF BUSINESS ECONOMICS AND MANAGEMENT, vol. 14, no. 2, 2013, pp. 364–85, doi:10.3846/16111699.2011.652980.
- APA
- Van Geyt, D., Van Cauwenberge, P., & Vander Bauwhede, H. (2013). The impact of the financial crisis on insider trading profitability in Belgium. JOURNAL OF BUSINESS ECONOMICS AND MANAGEMENT, 14(2), 364–385. https://doi.org/10.3846/16111699.2011.652980
- Chicago author-date
- Van Geyt, Debby, Philippe Van Cauwenberge, and Heidi Vander Bauwhede. 2013. “The Impact of the Financial Crisis on Insider Trading Profitability in Belgium.” JOURNAL OF BUSINESS ECONOMICS AND MANAGEMENT 14 (2): 364–85. https://doi.org/10.3846/16111699.2011.652980.
- Chicago author-date (all authors)
- Van Geyt, Debby, Philippe Van Cauwenberge, and Heidi Vander Bauwhede. 2013. “The Impact of the Financial Crisis on Insider Trading Profitability in Belgium.” JOURNAL OF BUSINESS ECONOMICS AND MANAGEMENT 14 (2): 364–385. doi:10.3846/16111699.2011.652980.
- Vancouver
- 1.Van Geyt D, Van Cauwenberge P, Vander Bauwhede H. The impact of the financial crisis on insider trading profitability in Belgium. JOURNAL OF BUSINESS ECONOMICS AND MANAGEMENT. 2013;14(2):364–85.
- IEEE
- [1]D. Van Geyt, P. Van Cauwenberge, and H. Vander Bauwhede, “The impact of the financial crisis on insider trading profitability in Belgium,” JOURNAL OF BUSINESS ECONOMICS AND MANAGEMENT, vol. 14, no. 2, pp. 364–385, 2013.
@article{3206593,
abstract = {{The 2007 global financial crisis led to a chaotic financial environment characterized by highly uncertain and volatile stock markets. This created additional uncertainty about the fundamental value of shares and potentially increased the benefit of inside information. In this paper, we use event study methodology to examine whether Belgian corporate insiders were able to benefit from these turbulent market conditions. Given the large weight of financial institutions, the Belgian stock market was especially vulnerable to the financial crisis and provides an interesting environment to test this hypothesis. Our results show that, while insiders are generally able to earn abnormal returns, these returns are significantly higher during the years of the financial crisis.}},
author = {{Van Geyt, Debby and Van Cauwenberge, Philippe and Vander Bauwhede, Heidi}},
issn = {{1611-1699}},
journal = {{JOURNAL OF BUSINESS ECONOMICS AND MANAGEMENT}},
keywords = {{MARKET-EFFICIENCY,INFORMATION ASYMMETRY,CORPORATE GOVERNANCE,DISCLOSURE,OWNERSHIP,RETURNS,STOCK,FIRMS,COMPENSATION,BANKRUPTCY,insider trading,equity markets,market efficiency,information asymmetry,financial crisis,abnormal returns,event study}},
language = {{eng}},
number = {{2}},
pages = {{364--385}},
title = {{The impact of the financial crisis on insider trading profitability in Belgium}},
url = {{http://doi.org/10.3846/16111699.2011.652980}},
volume = {{14}},
year = {{2013}},
}
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