This study examines the information value of corporate insider trading disclosures for a sample of 490 German
companies. Our results indicate that insiders selling stocks in their own company reveal negative information about the intrinsic
firm value. This is especially the case for large volume sale transactions. In addition, stock prices of smaller companies
react stronger to insider transactions. Furthermore, insiders tend to time their transactions, selling shares after stock
price increases and buying shares after stock price decreases.