Impacts of a Seven Factor Model on Gil Stock Price – A Case in Vietnam

Abstract

Fluctuation of stock price in ex-import and textile system in developing countries such as Vietnam will reflect the business health of economic system. Based on the above data analysis from our regression model, although low inflation during 2015-2016 is a good signal for GIL stock price, we would suggest the government, Ministry of Finance and State Bank of Vietnam consider to control inflation more rationally, i.e not increasing much and suitable with each economic development stage. Governmental bodies and bank system also need to apply macro policies to stimulate economic growth, however not reducing lending rate too much, together with credit, operational and market risk management, corporate governance and controlling bad debt. This research finding and recommended policy also can be used as reference in policy for ex-import and textile system in many developing countries.