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Is the transparency of the Swedish stock market at risk?

Nilstoft, Malin LU and Birgersson, Rebecka (2014) FEKN90 20141
Department of Business Administration
Abstract
This study examines the transparency of the Swedish stock market with regards to the new, eased regulation on quarterly reporting. The study investigates whether insider trading and analysts’ recommendations could be alternative sources of information to quarterly reports. Consistent with prior research, it finds the magnitude of informativeness of insider buys being greater than for insider sells. The study finds no strong sign of informativeness of analysts’ recommendations, but a direct market reaction is found as a response to analysts’ sell recommendations. The obtained results suggest that insider trades and analysts’ recommendations are slightly informative, but not informative enough to be regarded as substitutes to quarterly... (More)
This study examines the transparency of the Swedish stock market with regards to the new, eased regulation on quarterly reporting. The study investigates whether insider trading and analysts’ recommendations could be alternative sources of information to quarterly reports. Consistent with prior research, it finds the magnitude of informativeness of insider buys being greater than for insider sells. The study finds no strong sign of informativeness of analysts’ recommendations, but a direct market reaction is found as a response to analysts’ sell recommendations. The obtained results suggest that insider trades and analysts’ recommendations are slightly informative, but not informative enough to be regarded as substitutes to quarterly reports. The conclusion is that the amount of publicly available information sources are reduced if firms hand out less quarterly reports, which could lead to increased information asymmetries and thereby a decreased transparency of the Swedish market. (Less)
Please use this url to cite or link to this publication:
author
Nilstoft, Malin LU and Birgersson, Rebecka
supervisor
organization
alternative title
A study on insider trading and analysts’ recommendations with regards to the eased regulation on quarterly reports
course
FEKN90 20141
year
type
H1 - Master's Degree (One Year)
subject
keywords
Insiders, analysts, investors, informativeness, transparency, asymmetric information, quarterly reports, eased regulation and behavioural finance
language
English
id
4498446
date added to LUP
2014-06-23 09:01:02
date last changed
2014-06-23 09:01:02
@misc{4498446,
  abstract     = {{This study examines the transparency of the Swedish stock market with regards to the new, eased regulation on quarterly reporting. The study investigates whether insider trading and analysts’ recommendations could be alternative sources of information to quarterly reports. Consistent with prior research, it finds the magnitude of informativeness of insider buys being greater than for insider sells. The study finds no strong sign of informativeness of analysts’ recommendations, but a direct market reaction is found as a response to analysts’ sell recommendations. The obtained results suggest that insider trades and analysts’ recommendations are slightly informative, but not informative enough to be regarded as substitutes to quarterly reports. The conclusion is that the amount of publicly available information sources are reduced if firms hand out less quarterly reports, which could lead to increased information asymmetries and thereby a decreased transparency of the Swedish market.}},
  author       = {{Nilstoft, Malin and Birgersson, Rebecka}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Is the transparency of the Swedish stock market at risk?}},
  year         = {{2014}},
}