The trading behavior of foreign investors around stock repurchases announcements
Keywords:
foreign investor, stock repurchase, event study, abnormal trading volume.
Abstract
This paper investigate the trading behavior of foreign investors around stock repurchases announcements. We
use stock repurchases data of companies listed on the Ho Chi Minh Stock Exchange during the period from
March 2008 to December 2014. Employing event study method, the results reveal the existence of abnormal
trading volume of foreign investors around the event day. The finding also support the information asymmetry
hypothesis. In other words, foreign investors make decisions based on the trading behavior of firm managers.
