Anchoring Bias of Behavior towards Legal Insider Trading Decision on Indicator 52-WeekHigh in Ho Chi Minh Stock Exchange

DOI

10.2991/aebmr.k.200606.050How to use a DOI?

Keywords

legal insider trading, 52-WeekHigh, anchoring bias

Abstract

The paper considers the problem of bias anchoring behavior on legal insider trading decisions that occur in Ho Chi Minh City Stock Exchange. A major review of research done using monthly stock data that are consistently present in VN30 stock index for 10 years. The results in this study show that legal insider trading decisions (internal shareholders and related person’s) are influenced by the behavior of the anchoring bias to the indicator 52-WeekHigh. The nearness of the stock price indicator of 52-WeekHigh encourages their tendency to commit sales more than purchasing decisions. It works in reverse, whensthe stock price areqfar from the indicator of 52-WeekHigh, then the insider tend to purchase more shares than sales did. These conditions indicate that the insider performs a contrarian strategy to trade. While insider trading decisions made by the major shareholders are not affected by the indicator 52-WeekHigh. Those findings indicate that despite having access to insider information about the company is better than public investors in its decision-making is still susceptible to bias behavior.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Anadia Nafila
AU  - Buddi Wibowo
PY  - 2020
DA  - 2020/06/09
TI  - Anchoring Bias of Behavior towards Legal Insider Trading Decision on Indicator 52-WeekHigh in Ho Chi Minh Stock Exchange
BT  - Proceedings of the 23rd Asian Forum of Business Education(AFBE 2019)
PB  - Atlantis Press
SP  - 287
EP  - 290
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200606.050
DO  - 10.2991/aebmr.k.200606.050
ID  - Nafila2020
ER  -