| Popis: |
This thesis examines directors' dealings transactions in Germany. The sample includes over 3,612 events which were reported to the German financial authority BaFin from January 2002 until August 2013. Since the release of the European Market Abuse Directive there is a regulatory framework for doing such transactions. When managers are buying and selling their own companies' stocks they reveal information about their companies' values to the public. In fact, they often take the contrarian role to investors. This position is often based on the fact of information asymmetry and often managers or investors may earn excess returns. This abnormality is clearly a violation of the strong form efficient market hypothesis. Through this study an important hypothesis will be tested, for purchase and sale transactions. The results for the first category show that directors act as contrarian investors and usually trade against the general market wisdom. Indeed, other studies suggest similar results. |
