Volume 2 • Issue 3 | September, 2018

Earning Disclosure and Abnormal Returns: Empirical Evidence from Ho Chi Minh Stock Exchange

Phan Dinh Khoi, Tran Thuy Hang


Earnings announcement significantly influences stock prices in developed markets while there are few empirical papers on this topic in stock markets in Viet Nam. This paper aims to investigage the relationship between abnormal returns and earnings announcement based on the financial statements of 160 listed firms on the Ho Chi Minh City Stock Exchange from period 2010 to 2015. The event study with before and after 20 day horizon was used to analyze the reaction of abnormal returns of stock price in association with earnings announcement. The results confirmed the existence of abnormal returns in the days before the event of earnings information to be disclosed and the 4th day after the event occurred. This finding implies that closely watch earnings announcement helps investors anticipate stock price trends. The result also indicates a small difference in abnormal returns among different types of industries. Therefore, the listed firms should assure disclosure of earnings information more transparent by applying international accounting practices in order to attract public attention.