Directors' Dealings and Insider Trading in Germany

Directors¿ Dealings and Insider Trading are well-known patrons to both, the academic literature and the financial press. While directors¿ dealings have been regulated in the US and many other countries, the German legislator tightened only a few years ago trading rules for insiders and imposed in July 2002 a notification requirement for directors¿ dealings. The author addresses directors¿ dealings and insider trading in Germany from different perspectives. He starts out with a short-term analysis tying in with previous research on the German market and follows with an in-depth long-term analysis. He closes with an ordered-probit model analyzing the relationship between corporate actions and directors¿ dealings.