Does Insider Trading Generate Abnormal Earnings?
(2008)Department of Business Administration
- Abstract
- The purpose of our study is to find out if insiders in Sweden generate abnormal earnings through insider trades. We want to pinpoint the cause for abnormal earnings by dividing transactions after company market value, size of the trade and type of insider. A quantitative approach using the market model have been used. We have conducted an event study over two short term event windows. We conclude that insiders in Sweden generate positive abnormal earnings for sales and negative for purchases in our “long” event window. We also have evidence that the abnormal earnings deviate depending on the market value of the company, size of the trade and which type of insider conducting the transactions. We have created a unique matrix combining the... (More)
- The purpose of our study is to find out if insiders in Sweden generate abnormal earnings through insider trades. We want to pinpoint the cause for abnormal earnings by dividing transactions after company market value, size of the trade and type of insider. A quantitative approach using the market model have been used. We have conducted an event study over two short term event windows. We conclude that insiders in Sweden generate positive abnormal earnings for sales and negative for purchases in our “long” event window. We also have evidence that the abnormal earnings deviate depending on the market value of the company, size of the trade and which type of insider conducting the transactions. We have created a unique matrix combining the categories, which pinpoints exactly which combination that generates abnormal returns. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/1340554
- author
- Lindros, Christian ; Hultenius, Henrik and Sönnerborg, Michael
- supervisor
- organization
- year
- 2008
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Insider Trading, Event Study, Abnormal Returns, Swedish Stock Market, Efficient Markets, Management of enterprises, Företagsledning, management
- language
- Swedish
- id
- 1340554
- date added to LUP
- 2008-01-18 00:00:00
- date last changed
- 2012-04-02 16:52:26
@misc{1340554,
abstract = {{The purpose of our study is to find out if insiders in Sweden generate abnormal earnings through insider trades. We want to pinpoint the cause for abnormal earnings by dividing transactions after company market value, size of the trade and type of insider. A quantitative approach using the market model have been used. We have conducted an event study over two short term event windows. We conclude that insiders in Sweden generate positive abnormal earnings for sales and negative for purchases in our “long” event window. We also have evidence that the abnormal earnings deviate depending on the market value of the company, size of the trade and which type of insider conducting the transactions. We have created a unique matrix combining the categories, which pinpoints exactly which combination that generates abnormal returns.}},
author = {{Lindros, Christian and Hultenius, Henrik and Sönnerborg, Michael}},
language = {{swe}},
note = {{Student Paper}},
title = {{Does Insider Trading Generate Abnormal Earnings?}},
year = {{2008}},
}