Journal of Management and Governance

, Volume 6, Issue 3, pp 215–234 | Cite as

Directors' Share Dealings and Company Financial Performance

  • Philip A. Hamill
  • Philip McIlkenny
  • Kwaku K. Opong


This paper examines the response of securityprices to the share dealings by directors ofsmall capitalised firms in the United Kingdomand tests as to whether the share dealingscontain information with regard to the firm'sfuture financial performance. The results ofthe study indicate that investors respondpositively to the information signals ofdirectors' equity purchases. We find littleevidence to suggest that directors' equitysales possess significant information content.The results suggest that there is a positiveassociation between financial performance andthe type of trade directors engage in.

directors excess returns financial performance financial variables 


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Copyright information

© Kluwer Academic Publishers 2002

Authors and Affiliations

  • Philip A. Hamill
    • 1
  • Philip McIlkenny
    • 2
  • Kwaku K. Opong
    • 3
  1. 1.School of Management and EconomicsQueen's University BelfastU.K
  2. 2.School of ManagementUniversity of OttawaOttawaCanada
  3. 3.Department of Accounting and FinanceUniversity of GlasgowGlasgowU.K.

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