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Are South African directors able to earn abnormal returns by trading in their companies shares?
This paper investigates whether South African directors are able to earn abnormal returns by trading in their companies' shares. An event study methodology was used based on the Capital Asset Pricing Model for director's trades during the period 2009 to 20 12. The results suggest sales transactions...
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| Other Authors: | |
| Format: | Thesis |
| Language: | English |
| Published: |
Department of Finance and Tax
2016
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| _version_ | 1867613250250604544 |
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| access_status_str | Open Access |
| author | Ismail, Ameera |
| author2 | Kruger, Ryan |
| author_browse | Ismail, Ameera Kruger, Ryan |
| author_facet | Kruger, Ryan Ismail, Ameera |
| author_sort | Ismail, Ameera |
| collection | Thesis |
| description | This paper investigates whether South African directors are able to earn abnormal returns by trading in their companies' shares. An event study methodology was used based on the Capital Asset Pricing Model for director's trades during the period 2009 to 20 12. The results suggest sales transactions are associated with a greater market reaction than purchases. A better market indication is received from in directly beneficial trades than directly beneficial, specifically for sales. Upon further analysis, we find significantly higher abnormal returns for larger value trades. For purchases, single director trades provide a stronger market reaction than multiple director trades. In contrast, sales transactions provide a stronger signal when they are from multiple directors than single directors |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/20438 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:33:08.525Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2016 |
| publishDateRange | 2016 |
| publishDateSort | 2016 |
| publisher | Department of Finance and Tax |
| publisherStr | Department of Finance and Tax |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/20438 Are South African directors able to earn abnormal returns by trading in their companies shares? Ismail, Ameera Kruger, Ryan Financial Management This paper investigates whether South African directors are able to earn abnormal returns by trading in their companies' shares. An event study methodology was used based on the Capital Asset Pricing Model for director's trades during the period 2009 to 20 12. The results suggest sales transactions are associated with a greater market reaction than purchases. A better market indication is received from in directly beneficial trades than directly beneficial, specifically for sales. Upon further analysis, we find significantly higher abnormal returns for larger value trades. For purchases, single director trades provide a stronger market reaction than multiple director trades. In contrast, sales transactions provide a stronger signal when they are from multiple directors than single directors 2016-07-18T12:55:40Z 2016-07-18T12:55:40Z 2016 Master Thesis Masters MCom http://hdl.handle.net/11427/20438 eng application/pdf Department of Finance and Tax Faculty of Commerce University of Cape Town |
| spellingShingle | Financial Management Ismail, Ameera Are South African directors able to earn abnormal returns by trading in their companies shares? |
| thesis_degree_str | Master's |
| title | Are South African directors able to earn abnormal returns by trading in their companies shares? |
| title_full | Are South African directors able to earn abnormal returns by trading in their companies shares? |
| title_fullStr | Are South African directors able to earn abnormal returns by trading in their companies shares? |
| title_full_unstemmed | Are South African directors able to earn abnormal returns by trading in their companies shares? |
| title_short | Are South African directors able to earn abnormal returns by trading in their companies shares? |
| title_sort | are south african directors able to earn abnormal returns by trading in their companies shares |
| topic | Financial Management |
| url | http://hdl.handle.net/11427/20438 |
| work_keys_str_mv | AT ismailameera aresouthafricandirectorsabletoearnabnormalreturnsbytradingintheircompaniesshares |