Substitutes for insider trading

Trading upon not released, insider, information is an illegal activity. Trading in shares that can be assumed to perform in a similar way based on the same information is legal, and potentially profitable. The goal of this thesis is to investigate if substitutes to listed shares exist on the Stockholm Stock Exchange, and whether they provide a similar return when affected by releases of insider information.

Shareholder-Value Maximization and Tacit Collusion

This report demonstrates that so long as the stock market has ideal foresight, some dividends are distributed, and incentives are paid more than once or are deferred, stock-related pay packages are powerful incentives for managers to aid tacit collusive deals in repeated oligopolies. The stock marketplace anticipates the losses from punishment periods and discounts them …

Read moreShareholder-Value Maximization and Tacit Collusion

Expectations, Uncertainty, and Monetary Policy

Essay 1 – To evaluate measures of expectations I examine and compare some of the most common methods for capturing expectations: the futures method which utilizes financial market prices, the VAR forecast method, and the survey method. I study average expectations on the Federal funds rate target, and the main findings can be summarized as …

Read moreExpectations, Uncertainty, and Monetary Policy

Accounting, Stock Markets and Everyday Life

The backdrop of this dissertation is one ubiquitous element of everyday life: the stock market. Traditionally, accounting and stock markets are logically coordinate entities and this thesis analyzes how accounting supports private investors in their role as shareholders – as investors in shares and owners of companies. This analysis is carried out in four independent …

Read moreAccounting, Stock Markets and Everyday Life

Accounting Information for Stock Market Efficiency

This thesis contributes to the discussion on the importance of accounting information for stock market efficiency. As any analysis of market efficiency depends on the use of adequate risk proxies, the thesis first investigates the ability of commonly used risk factors to explain the cross-sectional variation of Swedish stock returns. The findings suggest that capturing …

Read moreAccounting Information for Stock Market Efficiency

The Stock Market and Unemployment: The Cross-Section Volatility Model

Ever since the evolvement of modern macroeconomics, theories without foundation in the Keynesian view, such as Real Business Cycle (RBC) theories, have aimed for recognition.The purpose of this paper is to examine whether the Cross-Section Volatility model (CSV), a RBC-model developed by Laclair Brainard and David Cutler (1993) based on US data, holds and demonstrates …

Read moreThe Stock Market and Unemployment: The Cross-Section Volatility Model