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dc.contributor.authorOzkan, Aydin*
dc.contributor.authorPoletti-Hughes, Jannine*
dc.contributor.authorTrzeciakiewicz, Agnieszka*
dc.date.accessioned2017-02-23T10:03:42Z
dc.date.available2017-02-23T10:03:42Z
dc.identifier.citationOzkan A, Poletti-Hughes J and Trzeciakiewicz A (2017) Directors’ share dealings and corporate insolvencies: Evidence from the UK. European Journal of Finance. 23(5): 427–455.en_US
dc.identifier.urihttp://hdl.handle.net/10454/11460
dc.descriptionYesen_US
dc.description.abstractThis paper investigates the relation between insider trading and the likelihood of insolvency with a specific focus on the directors’ sale and purchase transactions preceding insolvency.We use a unique data set on directors’ dealings in 474 non-financial UK firms, of which 117 filed for insolvency, over the period 2000–2010.We show that the directors of insolvent firms increase their purchase transactions significantly as the insolvency approaches. The results also reveal a significant relation between three different measures of insider trading activity and the likelihood of insolvency, which is observed to be positive only during the last six-month trading period. The relation is negative for the earlier trading periods. While the earlier purchase transactions appear to be motivated by superior information held by insiders, the purchase trades closer to the insolvency date are possibly initiated by directors’ motives to influence the market’s perception of the firm in an attempt to avert or delay insolvency.en_US
dc.language.isoenen_US
dc.relation.isreferencedbyhttp://dx.doi.org/10.1080/1351847X.2015.1040168en_US
dc.rights© 2015 Taylor & Francis. This is an Author's Original Manuscript of an article published by Taylor & Francis in European Journal of Finance on 8 May 2015 available online at http://dx.doi.org/10.1080/1351847X.2015.1040168
dc.subjectDirectors’ trades; Share dealings; Insider trading; Likelihood of insolvencyen_US
dc.titleDirectors’ share dealings and corporate insolvencies: evidence from the UKen_US
dc.status.refereedyesen_US
dc.date.Accepted2015-04-04
dc.date.application2015-05-08
dc.typeArticleen_US
dc.type.versionAccepted Manuscripten_US
refterms.dateFOA2018-07-27T01:15:36Z


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