The performance of insider transactions - A research from the Finnish stock markets
School of Business | Master's thesis
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AbstractUsing a unique and granular data set of 5,049 Finnish insider transactions from a period between August 2016 and August 2023, I further contribute to the research field of the performance of corporate insider transactions in the Finnish stock markets. I present descriptive statistics for the average performances of corporate insider transactions on three, six, nine, and twelve months after the transaction for corporate insiders by insider position and gender. I find statistically significant abnormal returns for insider purchases nine and twelve months after the transaction, and for sales three months after the transaction. For the control variable Transaction size, I find statistically significant positive contribution for purchases and negative contribution for sales to the abnormal returns in periods of six, nine and twelve months after the transaction. I also find that the company size contributes negatively to abnormal returns of insider purchases, and positively to insider sales. For sales, the results show statistically significant indication of the outperformance of female insiders over male insiders. Finally, I find statistically significant contribution for Insider positions CFO, Board member, and Top management to the abnormal returns of insider purchases.
Thesis advisorPuttonen, Vesa
insider trading, insider information, abnormal returns, stock markets