The Information Content of Indirect Insider Trading: Empirical Evidence from Vietnam Security Market

Han-Ching Huang and William Indajang

Journal of Applied Finance & Banking, 2022, vol. 12, issue 3, 2

Abstract: In this paper, we discuss the relationship among indirect insider trading, opportunistic trading and investment horizon in Vietnam security market. Goldie, Jiang, Koch and Wintoki [10] find that in order to camouflage opportunistic trading, insiders trade through the accounts of family members, trusts, and foundations, known as indirect insider trading. According to Cohen, Malloy and Pomorski [5], opportunistic trading are strong predictors of future return. Akbas, Jiang, and Koch [1] document that the performance of short-horizon insiders to forecast future stock prices are better than that of long-horizon insiders since SH insiders are more likely to be unexpected, on average, when compared with the typical expected trade of LH insiders. Empirical results show that the impact of opportunistic trades in indirect insider trading on future return is stronger than that in direct insider trading. In indirect insider trading, the impact of opportunistic trades on future return is still stronger than that of routine trades. Moreover, we find that the impact of short-horizon insiders in indirect insider trading on future return is stronger than that in direct insider trading. In indirect insider trading, the impact of short-horizon insiders on future return is still stronger than that of long-horizon insiders. JEL classification numbers: G11, G14.

Keywords: Insider trading; Indirect insider trading; Opportunistic trading; Investment horizon. (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.scienpress.com/Upload/JAFB%2fVol%2012_3_2.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spt:apfiba:v:12:y:2022:i:3:f:12_3_2

Access Statistics for this article

More articles in Journal of Applied Finance & Banking from SCIENPRESS Ltd
Bibliographic data for series maintained by Eleftherios Spyromitros-Xioufis ().