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Stock Market Response to Changes in Managerial Stock Ownership

Pargaliauskaité, Agne LU and Stehl, Sebastian LU (2014) BUSN88 20141
Department of Business Administration
Abstract
The main aim of this thesis is to analyse the Swedish stock market and find any evidence that Swedish CEOs are able to gain abnormal returns by using inside information. The theoretical framework is based on the previous studies within the insider trading field. The key theories for this study are the Efficient Market Hypothesis and the Signalling Hypothesis. In order to determine the abnormal returns gained by Swedish CEOs, we are applying the Event Study based on the market model. Furthermore, statistical tests are performed in order to determine if the results are significant. Insider transactions of CEOs for companies listed at Nasdaq OMX Stockholm during 2009/01/01 – 2013/12/31 are studied.The findings of this thesis suggest that... (More)
The main aim of this thesis is to analyse the Swedish stock market and find any evidence that Swedish CEOs are able to gain abnormal returns by using inside information. The theoretical framework is based on the previous studies within the insider trading field. The key theories for this study are the Efficient Market Hypothesis and the Signalling Hypothesis. In order to determine the abnormal returns gained by Swedish CEOs, we are applying the Event Study based on the market model. Furthermore, statistical tests are performed in order to determine if the results are significant. Insider transactions of CEOs for companies listed at Nasdaq OMX Stockholm during 2009/01/01 – 2013/12/31 are studied.The findings of this thesis suggest that Swedish CEOs are able to obtain abnormal returns in the Swedish stock market by purchasing or selling their own shares. (Less)
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author
Pargaliauskaité, Agne LU and Stehl, Sebastian LU
supervisor
organization
course
BUSN88 20141
year
type
H1 - Master's Degree (One Year)
subject
keywords
Abnormal Returns, CEO, Efficient Market Hypothesis, Event Study, Information Asymmetry, Insider Trading, Market Model, Ownership Level, Signalling Hypothesis
language
English
id
4469672
date added to LUP
2014-07-02 09:17:36
date last changed
2014-07-02 09:17:36
@misc{4469672,
  abstract     = {The main aim of this thesis is to analyse the Swedish stock market and find any evidence that Swedish CEOs are able to gain abnormal returns by using inside information. The theoretical framework is based on the previous studies within the insider trading field. The key theories for this study are the Efficient Market Hypothesis and the Signalling Hypothesis. In order to determine the abnormal returns gained by Swedish CEOs, we are applying the Event Study based on the market model. Furthermore, statistical tests are performed in order to determine if the results are significant. Insider transactions of CEOs for companies listed at Nasdaq OMX Stockholm during 2009/01/01 – 2013/12/31 are studied.The findings of this thesis suggest that Swedish CEOs are able to obtain abnormal returns in the Swedish stock market by purchasing or selling their own shares.},
  author       = {Pargaliauskaité, Agne and Stehl, Sebastian},
  keyword      = {Abnormal Returns,CEO,Efficient Market Hypothesis,Event Study,Information Asymmetry,Insider Trading,Market Model,Ownership Level,Signalling Hypothesis},
  language     = {eng},
  note         = {Student Paper},
  title        = {Stock Market Response to Changes in Managerial Stock Ownership},
  year         = {2014},
}