Insider trading occurs daily and previous studies show that trading might even increase during volatile times. The market becomes especially volatile and uncertain during an economic crisis, such as the Covid-19 pandemic. In addition to that, previous studies show that the information asymmetry between insiders and outsiders increases during economic crises, giving the insiders an information advantage. Due to that, we investigate whether insiders, specifically CEOs, can use their advantage to predict future profitability during the Covid-19 pandemic in comparison to a time prior. The data consists of insider transactions on the Swedish stock market during 2017 and 2020. To test our hypothesis we use multiple linear regressions to see if there are any connections between our variables. Our results indicate that there is a connection between the volume of insider transactions and whether the pandemic is ongoing or not. However, our results do not indicate that insiders' ability to predict future profitability increases during an economic crisis. Despite that, the results seemingly differ depending on the industry.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:uu-509490 |
| Date | January 2023 |
| Creators | Mourad, Daniella, Chung, Kelly |
| Publisher | Uppsala universitet, Företagsekonomiska institutionen |
| Source Sets | DiVA Archive at Upsalla University |
| Language | Swedish |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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