Stock Market Information in Annual Reports: Relevance of Short Selling Derivatives Stock Options Programs and Share Repurchasing Programs: An Empirical Study
Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
This study analyses and argues that Stock Market Information is relevant in the annual report. The Stock Market Information currently published in Annual Reports does not contain standardised information making comparisons between companies difficult. Also, the professional investor has a far greater compared to the non-professional than he has when studying the financial statements. My research examines four areas of financial information; short selling of shares, traded derivatives, stock option programs and repurchasing programs. I will argue their relevance and test if they are statistically significant. The study may be characterised as an empirical study using data from the Stockholm Stock Exchange as well as the annual reports themselves. The companies studied belonged to the OMX index, considered to be the blue chip companies of Sweden at the time. This study shows that not all information about stock option programs was found in the annual report, including the effects of stock option programs and share repurchasing program. Emphasis lies on fairness, i.e. that the non-professional investor should be able to get a clear picture from the company’s annual report without being dependent on extra research capabilities available to the professional investor. Since the question of what type of information is of importance is almost philosophical, the purpose of study is to explore certain areas that might lead to further studies, eventually bringing a standardisation into the field of Stock Market Information published in various companies’ Annual Reports.
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IdentifiersURN: urn:nbn:se:su:diva-3753OAI: oai:DiVA.org:su-3753DiVA: diva2:193119