Stock price reactions to information about top managers

This article uses an event study to investigate the response of a bank’s stock price information related these banks’ top managers. In first event, Vice Chairman founding board Asia Commercial Bank (ACB) was arrested and Chief Executive Officer (CEO) this bank summoned by police for questioning. The second immediate resignation Board Directors Sacombank (STB) after he received summons from investigating agency. Both events happened in Vietnam. research results showed that unanticipated (the event) caused share prices both banks react more strongly, impact time longer than event. resulted cumulative abnormal returns ACB STB being –23.6% –9.1%. has been found be directly STB, but does not significantly affect stock, significant effect on return (AR (1) = –4.6%). Asymmetric information, inattention investor fear event-related losses may explain phenomenon.