Insider trading and its effects on stock price in Vietnam

Abstract

The paper examines the effect of insider trading on stock prices of non-financial companies listed
on the Vietnam stock market in the period of 2010-2019. Using event study methodology, the empirical
results show that there are abnormal returns surrounding announcements of trading activities of insiders
in Vietnam. More specifically, there are positive abnormal returns when buying announcements of insiders
and there are negative abnormal returns when selling announcements of insiders. In addition, the study also
shows factors affecting positively the abnormal returns around announcements of insider trading events,
such as dividend per share, return on assets, insiders who are member of the Board of Directors and the
number of insider trading stocks.