Abstract
This paper examines the market’s reaction to directors dealing in the shares of their company on the Dublin Stock Exchange. The traditional event study methodology is employed to test whether or not directors purchasing (selling) equity conveys a significant positive (negative) signal to the market. We find that there is no market reaction to directors’ equity purchases but a significant response to directors’ equity sales prior to the event. We suggest that these results may be associated with reduced information asymmetry and conjecture that the results reported here may point to the possible existence of an asymmetric market response to positive and negative information signals.
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