The impact of the financial crisis on insider trading profitability in Belgium
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 stu...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Vilnius Gediminas Technical University
2013-05-01
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| Series: | Journal of Business Economics and Management |
| Subjects: | |
| Online Access: | https://journals.vgtu.lt/index.php/JBEM/article/view/3719 |
| _version_ | 1818890438285721600 |
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| author | Debby Van Geyt Philippe Van Cauwenberge Heidi Vander Bauwhede |
| author_facet | Debby Van Geyt Philippe Van Cauwenberge Heidi Vander Bauwhede |
| author_sort | Debby Van Geyt |
| collection | DOAJ |
| description | 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.
First published online: 19 Oct 2012 |
| first_indexed | 2024-12-19T17:24:55Z |
| format | Article |
| id | doaj.art-b6e888bab3234988b0baf4eb0bac3e14 |
| institution | Directory Open Access Journal |
| issn | 1611-1699 2029-4433 |
| language | English |
| last_indexed | 2024-12-19T17:24:55Z |
| publishDate | 2013-05-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Journal of Business Economics and Management |
| spelling | doaj.art-b6e888bab3234988b0baf4eb0bac3e142022-12-21T20:12:36ZengVilnius Gediminas Technical UniversityJournal of Business Economics and Management1611-16992029-44332013-05-0114210.3846/16111699.2011.652980The impact of the financial crisis on insider trading profitability in BelgiumDebby Van Geyt0Philippe Van Cauwenberge1Heidi Vander Bauwhede2Department of Accountancy and Corporate Finance, Ghent University, Kuiperskaai 55/E, 9000 Ghent, BelgiumDepartment of Accountancy and Corporate Finance, Ghent University, Kuiperskaai 55/E, 9000 Ghent, BelgiumDepartment of Accountancy and Corporate Finance, Ghent University, Kuiperskaai 55/E, 9000 Ghent, BelgiumThe 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. First published online: 19 Oct 2012https://journals.vgtu.lt/index.php/JBEM/article/view/3719insider tradingequity marketsmarket efficiencyinformation asymmetryfinancial crisisevent study |
| spellingShingle | Debby Van Geyt Philippe Van Cauwenberge Heidi Vander Bauwhede The impact of the financial crisis on insider trading profitability in Belgium Journal of Business Economics and Management insider trading equity markets market efficiency information asymmetry financial crisis event study |
| title | The impact of the financial crisis on insider trading profitability in Belgium |
| title_full | The impact of the financial crisis on insider trading profitability in Belgium |
| title_fullStr | The impact of the financial crisis on insider trading profitability in Belgium |
| title_full_unstemmed | The impact of the financial crisis on insider trading profitability in Belgium |
| title_short | The impact of the financial crisis on insider trading profitability in Belgium |
| title_sort | impact of the financial crisis on insider trading profitability in belgium |
| topic | insider trading equity markets market efficiency information asymmetry financial crisis event study |
| url | https://journals.vgtu.lt/index.php/JBEM/article/view/3719 |
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