The stock market effects of legal insider trades, a study of legal insider trades at the Oslo Stock Exchange

Abstract

In this thesis, we study the market reaction to insider trades at the Oslo Stock Exchange. More specifically, we investigate the abnormal return on legal insider trades in the short run. Our study is conducted for the period 01.01.2020 – 31.12.2021. By using an event study approach, we document a significant market reaction to both insider purchases and insider sales. We also found evidence that the size of the trade and the size of the company is significant factors. We conclude that there are informational asymmetries between outsiders and insiders and that the market does not hold a strong-form efficiency.