HAL will be down for maintenance from Friday, June 10 at 4pm through Monday, June 13 at 9am. More information
Skip to Main content Skip to Navigation
Journal articles

The performance of corporate legal insiders on the French stock market

Abstract : This paper aims to examine the performance of legal insiders on the French market, from January 2011 to December 2017. We focus on purchase transactions in order not to face the many reasons that can force investors to close their position. Our results suggest that insiders generate an excess return over the SBF120 index on the short run. An outsider mimicking insiders’ actions can generate similar profits. This implies that their informational advantage is rather short-lived. However, both of them fail to beat simulated random investors in general. Our findings highlight that the outperformance is rather stock-specific: insiders beat random investors for some stocks. We also disentangle management from non-management insiders and show that non-management insiders generate a lower average excess return than management insiders. Our simulation setup however shows that none of the groups is able to beat random investors for all the stocks, even if management insiders outperform the simulated series in more cases than non-management insiders.
Complete list of metadata

Contributor : Isabelle Celet Connect in order to contact the contributor
Submitted on : Tuesday, November 10, 2020 - 2:18:53 PM
Last modification on : Tuesday, April 12, 2022 - 4:12:04 PM

Links full text




Stanislas Nivelleau de la Brunière, Jean-Come Haye, Paolo Mazza. The performance of corporate legal insiders on the French stock market. International Review of Law and Economics, Elsevier, 2020, 61, pp.105880. ⟨10.1016/j.irle.2019.105880⟩. ⟨hal-02998232⟩



Record views