Four Is Analyze Nonmarket environment

Analysis of the Nonmarket Environment:
The Four I’s


ISSUE

EFFECTS OF DIVIDEND ANNOUNCEMENT ON THE REACTION OF STOCK MARKET IN VIETNAM

Information leakage phenomenon

TRADING VOLUME

Insider trading

DIVIDEND ANNOUNCEMENT

ABNORMAL RETURN

The information transparency is limited

The Vietnam stock market is emerging
market
The securities law have not completed.


ACTORS & INTERESTS

Actors
Enterprises

Interests

Ensure the rights of their shareholders, Liquidity and
Reputation

Investors and Investment funds

Profits

Media Agencies

Information, selling data

Congress, Government, Stock Exchange, State securities

The market operates effectively and transparently,

Committee

ensuring the rights of all parties, complete securities law


ARENA
Nonmarket issues can play out in multiple settings, from courtrooms
and Stock forums all the way to the news media, the public domain, or
Some of investors do not expect to receive dividends whether in cash

the blog.

or stock. They just expect business operate effectively to help the stock
price increase, it can satisfy shareholders.

In some cases, the payment of dividends is only to overtake investors
on the weak cash flow of enterprises, especially those enterprises that
State agencies punish firms for late publication of financial
statements and late payment of dividends

pay dividends by stock continuously for many years. The only benefit of
this form of dividend payment may help investors "avoid tax".


INFORMATION

Dividend announcements are published on website, stock exchange.

Financial report

News (trade war, Corona virus, oil prices fall,…)

Update new policies, regulation, law


ASSET

A firm’s reputation and its perceived trustworthiness are essential if it wants to transfer infomation to market through
dividend annoucement.

Detailed knowledge of a committee’s decision-making procedures or key members’ concerns and policy positions are often
necessary to influence an issue in the context of stock market.

As an investor, you must have ability to analyze financial statements, combined with market sentiment, assess
unpredictable potential risks.

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