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- Bång, Joakim
(författare)
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Greener pastures substitute trading in blackout periods
- 2011
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Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- Using new UK legislation that imposes mandatory trading bans prior to company reports, I test the hypothesis that insiders will respond to such bans by trading in correlated stocks for which they are not classified as insiders. I fail to replicate the results from the existing literature on voluntary trading bans and find an ambiguous effect of the new legislation on bid-ask spreads. Furthermore, I find no evidence for substantial stock substitute trading. Possible reasons for the differences between my findings and the existing literature is discussed, and I conclude that previously found effects of insider blackout periods on bid-ask spreads are likely to be overstated.
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