European Journal of Law and Economics

, Volume 27, Issue 3, pp 285–308 | Cite as

Regulated and unregulated insider trading around earnings announcements

  • Juha-Pekka Kallunki
  • Henrik Nilsson
  • Janne PeltoniemiEmail author


This paper analyses insider trading behaviour around annual and interim earnings announcements during changing legislative environments in Sweden from 1980 to 2003. Using a unique data set, we are able to explore the nature of insider trading patterns from unregulated to strongly regulated insider trading markets. We find limited evidence of opportunistic insider trading. Insiders seem to be reluctant to sell stocks before positive earnings announcements. They also tend to time their trades in conjunction with an immediate post-announcement period, i.e. “safety trading”, which becomes more evident within stronger legislation environments. Some support for contrarian trading behaviour is also found.


Insider trading Earnings announcements Legislation 

JEL Classification

D82 G32 M40 K42 



We are grateful to professor Allan Hodgson and the anonymous referee for their helpful comments. We would also like to thank Elisa Vesikukka for her help in gathering data and the Swedish Financial Supervisory Authority for providing insider data.


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Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  • Juha-Pekka Kallunki
    • 1
  • Henrik Nilsson
    • 2
  • Janne Peltoniemi
    • 1
    Email author
  1. 1.Department of Accounting and FinanceUniversity of OuluOuluFinland
  2. 2.Department of Accounting and FinanceUmeå School of BusinessUmeåSweden

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