Browsing by Author "Tell, Jonatan"

Filter results by typing the first few letters
Now showing 1 - 2 of 2
  • No Thumbnail Available
    Item
    Can an investor gain positive abnormal return by mimicking insider transactions?
    (2021-02-24) Bodin, Oscar; Tell, Jonatan; University of Gothenburg/Department of Business Administration; Göteborgs universitet/Företagsekonomiska institutionen
    Background: The efficient market hypothesis is a theory that has been widely debated and studied during the years. Some agree with the theory, but some disagree. One way to study the efficient market hypothesis is by looking at the possibility to gain positive abnormal return on the stock market. A lot of studies have been made throughout the years but mainly in bigger countries and markets like USA and UK and the results vary. This makes it interesting to study the Swedish market to see to what extent insiders can exploit insider information and the markets efficiency to price these insider transactions. The study is based on insider transactions in all companies on OMXS30 during the period 2015- 01-01 to 2020-10-30. We also investigate if there is a correlation between abnormal return and transaction size, transaction type or the position of the insider. Question at issue: Can an investor gain positive abnormal return by mimicking insider transactions of firms in OMXS30? Methodology: An event study is done where the price of each stock is compared to OMXS30, when an insider transaction has been made, over a time period of 20, 60 and 120 business days. Further, we investigate if the results are statistically significant by doing a t-test with a 95% significance level. The study’s null hypothesis and alternative hypothesis are the following: H0: It is not possible to gain positive abnormal return by mimicking insiders. HA: It is possible to gain positive abnormal return by mimicking insiders. Results: The study shows that it is possible to gain positive abnormal return on OMXS30, but only by mimicking the sell transactions of insiders. It also shows that the mimicking of any chief officer position will generate the highest short-term return, also, the highest transaction size points to the highest short-term return.
  • No Thumbnail Available
    Item
    Underpricing under Uncertainty: A comparative event study of the effects of Covid-19 restrictions on IPO underpricing
    (2023-07-03) Allgulander, Oscar; Tell, Jonatan; University of Gothenburg/Graduate School; Göteborgs universitet/Graduate School
    This paper has studied underpricing of initial public offerings during the highly uncertain time of the Covid-19 pandemic. Sweden did not implement coercive strategies such as lockdowns compared to most other countries, which has given this study an unique opportunity to investigate how societal factors mitigating uncertainty have an impact on the IPO market. In order to answer the research question: How did Sweden's unconventional covid strategy impact IPO underpricing during Covid-19?; a sample of companies conducting an IPO from the 11th of March 2020 until 9th February 2022 in Sweden, Norway, Denmark, and the Netherlands was retrieved. By completing an event study and supplemental econometric analysis, this study was able to state underpricing as an empirical fact throughout all samples. The results also allowed us to conclude Sweden’s strategy of voluntary recommendations decreased societal uncertainty, which subsequently impacted the IPO market by significantly reducing underpricing.