| dc.description.abstract | In this paper we investigate insider
trades on Oslo Børs.
More specifically, w
e explore
the
market reaction to in
sider trades, the abnormal returns earned by insiders in the long run, and
finally we
investigate whether outsiders can earn money by mimicking insider trades. Our
analy
sis is conducted for the
period 01.01.2010
–
26
.
09
.2014.
Using an event study
approach,
we document a strong initial market reaction to insider trades, particularly insider
trades made by managers and directors, and insider trades in firms with recent financial
distress. We also find some evidence of long term abnormal returns
for
insiders
i
n certain
firm categories, and for certain types of insiders. Finally, we develop an insider portfolio that
outperforms the benchmark using standard performance measurements, but we do not find
any significant alphas. We conclude that there are information
al asymmetries between
outsiders and insiders, and that the market does not hold strong
-
form efficiency.
Our study
has implications for those who seeking to earn abnormal returns by following insider based
strategies. | nb_NO |
