Is the transparency of the Swedish stock market at risk?
(2014) FEKN90 20141Department 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:
http://lup.lub.lu.se/student-papers/record/4498446
- 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
- 2014
- 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}}, }