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Does Insider Trading Generate Abnormal Earnings?

Lindros, Christian; Hultenius, Henrik and Sönnerborg, Michael (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)
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author
Lindros, Christian; Hultenius, Henrik and Sönnerborg, Michael
supervisor
organization
year
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
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},
  keyword      = {Insider Trading,Event Study,Abnormal Returns,Swedish Stock Market,Efficient Markets,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Does Insider Trading Generate Abnormal Earnings?},
  year         = {2008},
}