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@article{1318487, author = {Linnertová, Dagmar and Deev, Oleg}, article_location = {Brno}, article_number = {6}, doi = {http://dx.doi.org/10.11118/actaun201563061995}, keywords = {insider trading; panel Granger causality; DAX; market manipulation}, language = {eng}, issn = {1211-8516}, journal = {Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis}, title = {Insider trading activities and returns of German blue chips}, volume = {63}, year = {2015} }
TY - JOUR ID - 1318487 AU - Linnertová, Dagmar - Deev, Oleg PY - 2015 TI - Insider trading activities and returns of German blue chips JF - Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis VL - 63 IS - 6 SP - 1995-2003 EP - 1995-2003 PB - Mendelova univerzita v Brně SN - 12118516 KW - insider trading KW - panel Granger causality KW - DAX KW - market manipulation N2 - The aim of this paper is to investigate the causality between stock returns and insider open market transactions. The Dumitrescu-Hurlin (2012) heterogeneous approach to panel Granger causality is chosen to examine the relationship. The investigation is conducted on the 30 most traded German blue chips during the period of 2006-2014. The strong causality is revealed in the one-month period. Thus, stock returns may be used to predict future insider trading activity. The strong causality between stock returns and future insider buying and selling transactions is further confirmed with three out of four employed insider trading indices. The fact of the legal insider trade (either buy or sell) is more important than its volume. The reverse relationship is weak and valid only for longer time horizon of twelve months. Our results indicate that insider traders do not degrade the market efficiency in the long run. ER -
LINNERTOVÁ, Dagmar a Oleg DEEV. Insider trading activities and returns of German blue chips. \textit{Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis}. Brno: Mendelova univerzita v Brně, 2015, roč.~63, č.~6, s.~1995-2003. ISSN~1211-8516. doi:10.11118/actaun201563061995.
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