Informed trading by non-financial companies

Abstract

It is well documented in the finance literature how share prices go up when companies increase dividend payouts. The long-term trend, however, is that more companies now retain excess cash rather than paying dividends. In this paper I investigate if companies retain cash to invest on private information in domestic stock markets. I look at 20,620 domestic non-financial companies trading shares on the Oslo Stock Exchange (OSE) over the period 1993 to 2006. I find that companies earn excess risk-adjusted-returns from active trading. I conclude that companies retain at least some cash to take advantage of private information.

Indonesian Undergraduate Students’ Perspectives of Sustainable Economic Education: A Survey Study

“…Sustainable economic education is expected to change the outlook in society, especially the millennial youth, as economic agents who have only accommodated views that prioritize benefits and more consumers who base their buying choices on sustainable practices on the basis of brands and products. Many companies are committing possible projects -being reliable and profitable agents (Bento & Tontini, 2019;Fjesme, 2019).…”