The short-term impact of director trading in UK closed-end funds

Andriosopoulos, Dimitris and Steliaros, Michael and Thomas, Dylan C. (2015) The short-term impact of director trading in UK closed-end funds. European Journal of Finance, 21 (8). pp. 672-690. ISSN 1351-847X (https://doi.org/10.1080/1351847X.2013.867522)

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Abstract

Most closed-end funds are transparent entities that hold securities that are actively traded in liquid markets. In such a setting, the argument that director transactions mitigate information asymmetry has very limited applicability. Our results provide support for the theory of Barber and Odean [2008. “All that Glitters: The Effect of Attention and News on the Buying Behavior of Individual and Institutional Investors.” Review of Financial Studies 21: 785–818]: retail investor decision-making is influenced by attention-grabbing events. Director purchases are one such attention-grabbing event and are associated with significant positive price returns – the magnitudes of which are linked to the size of the purchase, the size of the fund, and the investment mandate. Trading volumes increase at the time of the purchase but most of the initial price responses and trading volumes dissipate over the following 15 days.

ORCID iDs

Andriosopoulos, Dimitris ORCID logoORCID: https://orcid.org/0000-0003-3033-2308, Steliaros, Michael and Thomas, Dylan C.;
  • Item type:Article
    ID code:47338
    Dates:
    Date
    Event
    2015
    Published
    5 February 2014
    Published Online
    22 October 2013
    Accepted
    Notes:This is an accepted manuscript of an article published by Taylor & Francis in The European Journal of Finance on 05 Feb 2014, available online: http://www.tandfonline.com/10.1080/1351847X.2013.867522.
    Subjects:Social Sciences > Commerce > Accounting
    Department:Strathclyde Business School > Accounting and Finance
    Depositing user: Pure Administrator
    Date deposited:05 Apr 2014 08:48
    Last modified:11 Nov 2024 10:38
    Related URLs:
    URI:https://strathprints.strath.ac.uk/id/eprint/47338
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