The Insider Scoop: A Study on the Effect of Insider Trading and Abnormal Stock Returns During Uncertain Market Condition of the Russia-Ukraine War

Sammanfattning: This paper examines how insider transactions of stocks listed on Nasdaq Stockholm generate abnormal returns during the period 2016-2022 and extends on how abnormal returns react in times of uncertainty, i.e., after the Invasion of Ukraine. Our findings suggest that there are smaller abnormal returns connected with insider trading in the timeframe of 2016-2022, but not necessarily as highly connected in times of uncertainty. This paper confirms the foundation set by previous studies, even though the stock market has gone through a shift of paradigm. Ultimately this thesis opens for more in-depth future research revolving around the new environment of the capital market along with insider trading and the behavioural phenomenon around it.