Hur resonerar marknaden?
en kvantitativ studie om aktiemarknadens prissättning vid publicering av insynshandel

Translated title of the thesis: How does the stockmarket reason?
  • Filip Herlin
  • Anton Åkesson

    Student thesis: Bachelor

    Abstract

    Insider trading is a common occurrence in the Swedish stock market. In 2015, 9 996 transactions were carried out of different types. According to previous research, something that to many sounds like an unlawful act has proven to be healthy for market efficiency.

    Earlier literature describes the importance of the insider’s position for the ability to generate excess return. Various positions have access to different information while positions are being appointed according to the individual's competence. These are factors that are believed to affect the individual's investment decisions. The literature also discusses differences between men and women's ability to achieve excess returns. It is believed that women and men have different working methods, which affect the ability to maintain and utilize information.

    The purpose of this thesis is examining market pricing when publishing insider trades. The study is based on the Swedish stock market to provide a better understanding of how the market values the insider position and gender.

    An event study is being conducted to study a possible reaction to the market. In order to interpret and analyze the results of the event study, various hypothesis tests and a multiple regression are performed. The authors’ approach is deductive and the study has been based on a bigger amount of quantitative data that has then been tested against the theory.

    The results show no significant differences in the market response when men and women’s insider trades are being published. The study finds similar results for the insider’s position. The conclusion is that the Swedish stock market does not value the insider’s position or gender in conjunction with insider trading. The study also finds no significant correlation between accumulated abnormal returns and insiders’ gender and position. Thus, the essay's two hypotheses are rejected. 

    Date of Award2017-Sep-27
    Original languageSwedish
    SupervisorManuchehr Irandoust (Supervisor) & Yrjö Collin Sven-Olof (Examiner)

    Educational program

    • Degree of Bachelor of Science in Business and Economics

    University credits

    • 15 HE credits

    Swedish Standard Keywords

    • Business Administration (50202)

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