Vietnam Stock Market Research Articles

THE FACTORS AFFECTING THE ENVIRONMENTAL INFORMATION REPORTING OF LISTED COMPANIES IN VIETNAM

The success of many organizations depends on the level of resource ownership, the real value of the expertise, the research and development activities, the interaction with the environment and society where they operate ... Thus, the description of resources according to the traditional expression of financial statements (FS) of Vietnamese enterprises has not met the demand of using information of stakeholders in the integration trend. Therefore, the paper is designed to analyze the factors affecting environmental information disclosure and propose solutions to enhance the responsibility for environmental performance, to meet the compliance with international practices and increasing the transparency of the stock market in Vietnam in the spirit of Circular 155/2015 / TT-BTC of listed enterprises.

Factors Affecting Debt Maturity Structure: Evidence from Listed Enterprises in Vietnam

This paper analyzes factors affecting the debt maturity structure of enterprises listed on the Vietnam stock market. The panel data of research sample includes 549 non-financial listed enterprises on the Vietnam stock market from 2009 to 2019. The Generalized Least Square (GLS) tool is employed to address econometric issues and to improve the accuracy of the regression coefficients. In this research, debt maturity structure is the dependent variable. Capital structures, fixed assets, liquidity, firm size, asset maturity, profitability, corporate income tax, gross domestic product, inflation rate, credit growth scale are independent variables in the study. The model results show, that among the factors affecting the structure of debt maturity, the capital structure, asset structure, and firm size have the highest estimation coefficients, which shows that capital structure, asset structure, and firm size plays an important role in the decision-making process of debt maturity structure. The empirical results show that there are differences in the impact of these factors on the debt maturity structures in state-owned enterprises and non-state enterprises listed on the Vietnam stock market. The findings of this article are useful for business administrators, helping business managers make the right financial decisions to determine the target debt maturity structure in enterprises.

Relationship between investor sentiment and Corporate investment activities on the stock market: Seeing from empirical Research

Investor sentiment is a sentimental factor, so in existing empirical studies there exist many different methods to measure the depiction of investor sentiment. The methods of designing indicators to measure investor sentiment for the whole stock market, there are no separate studies for investors according to specific industries of the business. Existing empirical studies in other countries show that investor sentiment affects investment activities of enterprises by two ways: The path of The catering theory and the theoretical path Theory of optimism”. The research results are still different. Most scholars argue that the relationship between investor sentiment and firm's investment level is a positive relationship, but some scholars prove that investor sentiment is inversely related to investment activities of the business. Therefore, the article proposes more research directions for the research articles on investment activities of enterprises participating in the stock market of Vietnam.

Factors Affecting Financial Risk: Evidence from Listed Enterprises in Vietnam

This paper analyzes factors affecting enterprise's financial risk listed on the Vietnam stock market. The panel data of research sample includes 524 non-financial listed enterprises on the Vietnam stock market for a period of eleven years, from 2009 to 2019. The Generalized Least Square (GLS) is employed to address econometric issues and to improve the accuracy of the regression coefficients. In this research, financial risk is measured by the Alexander Bathory model. Debt structure, Solvency, Profitability, Operational ability, Capital structure are independent variables in the study. Firm Size, firm age, growth rate are control variables. The model results show that in order to prevent and limit financial risk for enterprises listed on the Vietnam Stock Market, attention should be paid to variables reflecting Liability structure ratio, Quick Ratio, Return on Assets, Total asset turnover, Accounts receivable turnover, Net assets ratio and Fixed assets ratio. The empirical results show that there are differences in the impact of these factors on the financial risk in state-owned enterprises and non-state enterprises listed on the Vietnam stock market. The findings of this article are useful for business administrators, helping business managers make the right financial decisions to improve the efficiency of financial risk management in enterprises.

Shrinkage Model Selection for Portfolio Optimization on Vietnam Stock Market

This paper provides the practical application of a linear shrinkage framework on Vietnam stock market. The cumulative data points observed in this analysis are 468 weeks from January 2011 to December 2019. All the companies listed on Ho Chi Minh City Stock Exchange (HOSE), except the companies under two years period from Initial Public Offering (IPO), are considered. The cumulative number of stocks picked is therefore 350 companies. The VNINDEX, which is the Vietnam Stock Index, is used as a reference index for shrinking to a single-index model. The empirical results show that the shrinkage of covariance matrix for portfolio optimization gives the promising results for the investors on Vietnam stock market. The shrinkage method helps the investors to produce the optimal portfolio in the sense of having higher profit with lower levels of risk compared to the portfolio of the traditional SCM method. Moreover, the portfolio turnover of shrinkage method is always kept at low magnitudes, and this makes the shrinkage portfolios save much transaction costs and reduce the liquidity risks in the trading process. In addition, the ability of shrinkage method in making profit is once again confirmed by the Alpha coefficient that achieves a high positive value.

The Effect of Capital Structure on Financial Performance of Vietnamese Listing Pharmaceutical Enterprises

This study investigates the effect of capital structure on the financial performance of pharmaceutical enterprises which are listing on Vietnam's stock market. The study builds the regression using ROE as dependent variable and four independent variables, including self-financing, financial leverage, long-term asset and debt to assets ratios. In addition, we use other variables as controlling ones, such as firm size, fixed asset rate and growth. We collect data for the period from 2015 to 2019 of all 30 pharmaceutical enterprises which are currently listing on Vietnam's stock market. The least square regression (OLS) is used to test the effect of capital structure to the firms' financial performance. The analysis results show that the financial leverage ratio (LR), long-term asset ratio (LAR) and debt-to-assets ratio (DR) have positive relationship with firm performance, meanwhile the self-financing (E/C) affects negatively to the return on equity (ROE). Upon the findings we suggest that the Vietnamese government should focus on stabilizing macro environment to create favorable environment for enterprises. And the pharmaceutical enterprises should build more reasonable capital structure with higher debt proportion than equity, diversifying loan mobilization channels such as issuing long-term bonds. Additionally, the firms should expand the scale appropriately to maintain development and ability to pay debts.

The Lead and Lag Relationship Between Spot Market and Futures Market: Empirical Evidence From Vietnam

This study investigates the lead and lag relationship between Spot market and Futures market in Vietnam. In this study, we employ the data collected from stock-related database in Ho Chi Minh Stock Exchange and Ha Noi Stock Exchange. The data of daily closing prices of VN30 index (the spot price) and VN30F1M (the 1-month future price of VN30 index) are then collected. We apply various methods, namely: Granger causality test, Johansen co-integration test, Vector Error Correlation Model, Impulse Response Function and Variance Decomposition. The result of this paper is consistent with previous research. It finds strong evidence that Spot market leads Futures market in Vietnam stock market in both the short-run and long-run. Therefore, Spot market play a discovery role in which investors can obtain useful information from Spot market to improve their portfolio profit and minimize the risk. Besides, regulators can rely on this finding to come up with better policies and further develop Futures market.

Working Capital Management and Firm Profitability: Evidence from Industry Products and Services Enterprises Listed on the Vietnam Stock Market

The purpose of this study is to find out the effect of working capital management on company profitability. In light of this objective the study adopts quantitative approaches to test a series of research hypotheses. A sample of 86 industry products and services enterprises listed on the Vietnam stock market was used for a period from 2009 to 2019 with the total of 946 observations. The findings of the study showed that, there exists a highly significant negative relationship between average collection period and profitability indicating that a decrease in the number of days a firm receives payment from sales affects the profitability of the firm positively. This study will provide a general agenda to researchers, strategy makers, investors and professionals to guide future researches. Keywords: Working Capital, Profitability, Vietnam DOI: 10.7176/EJBM/12-27-12 Publication date: September 30 th 2020

The impact of the COVID-19 lockdown on stock market performance: evidence from Vietnam

PurposeThis study explores the effects of the COVID-19 outbreak and its following lockdown on daily stock returns in Vietnam, a fast-growing emerging market that successfully revived after the pandemic lockdown.Design/methodology/approachThis study uses panel-data regression models to evaluate the influence of the daily increase in the number of COVID-19 confirmed cases during pre-lockdown and lockdown on daily stock returns of 723 listed firms in Vietnam from 30 January to 30 May 2020.FindingsThe study confirms the adverse impact of the daily increasing number of COVID-19 cases on stock returns in Vietnam. The study also discloses that the Vietnam stock market before and during the nationwide lockdown performed in opposing ways. Though COVID-19 pre-lockdown had a significant, negative impact on Vietnam's stock returns, the lockdown period had a significant, positive influence on stock performance of the entire market and the different business sectors in Vietnam. The financial sector was hardest hit on the Vietnam stock market during the COVID-19 outbreak.Research limitations/implicationsThe study indicates investors' confidence and trust in the Vietnam government's decisions to combat COVID-19 and favorable stocks prices were the main reasons that the Vietnam stock market rebounded during and after lockdown.Originality/valueThis is the first study to examine the impact of COVID-19 during the pre-lockdown and lockdown periods on stock performance in Vietnam, a rapidly developing economy that was successful in controlling the pandemic with a rejuvenated stock market after lockdown.

The Black-Litterman Model for Portfolio Optimization on Vietnam Stock Market

The Black-Litterman asset allocation model is an extended portfolio management model to construct optimal portfolios by combining the market equilibrium with investor views into asset allocation decisions. In this paper we apply Black-Litterman model for portfolio optimization on Vietnames stock market. We chose ARIMA methodology utilized in financial econonometrics to predict the views of investor which are used as inputs of the Black-Litterman asset allocation process to find optimal portfolio and weights.

Development of Vietnamese stock market: Influence of domestic macroeconomic environment and regional markets

AbstractThis study has analysed the role of the domestic economic environment and regional markets (Thailand, Japan, Hong Kong and China) in explaining the dynamics of Vietnamese stock market. In so doing, we employed a time‐varying structural vector autoregression framework which accounts for time variations (in coefficients as well as in the variance–covariance matrix of innovations) on the data from July 2000 to December 2016. Our key findings suggested that the easing of monetary and credit conditions, stable and stronger currency and economic growth have played a significant and positive role in the development of the stock market in Vietnam. Inflation shocks did have a negative impact which implied that in policy setting the price stability is very important for the financial stability in Vietnam. The Vietnamese stock market is also heavily influenced by the regional markets, as there is strong evidence of co‐movement. However, it was also witnessed that despite having a similar direction of impact and co‐movement, different markets have an influence of different degrees and intensity on the Vietnamese stock market. Lastly, we also witnessed that as compared to the Global Financial Crisis, the recent periods showed comparatively lesser responsiveness. This could be associated with the intensive reaction during the period of financial turmoil as well as with an increase in the stability of the Vietnamese stock market as it matures.

Impacts of Earnings Quality and Debt Maturity on Investment Efficiency: Study Case in Vietnam

The paper analyzed the impact of earnings quality (EQ), debt maturity, investment efficiency (IE) of listed companies on Vietnam stock market thanks to the regression methods of FEM, REM and GLS and data of enterprises in the period of 2010 - 2018. The research findings have shown that EQ and debt maturity have a positive impact on EI, in which EQ has a stronger influence than debt maturity. A review of both EQ and the debt maturity for overinvestment or underinvestment indicated a positive impact and the stronger impact on overinvestment. Based on the research findings, the authors have put forth several recommendations for investors, businesses and policy makers.

Board of Directors and Financial Reporting Quality in Vietnam Listed Companies

This article studies the impact of the Board of Directors (BOD) on financial reporting quality (FRQ) in Vietnam listed companies. The research uses FEM, REM and GLS regression models, data collected at energy enterprises listed on the stock market in Vietnam from 2010 - 2018, with 2162 observations. The research results have found that the BOD size, BOD independence, BOD chairperson cum CEO has a positive impact on FRQ while BOD meeting frequency has a negative impact on FRQ. In addition, the audit quality, the ratio of liabilities has a positive impact on FRQ while company size has a negative impact on FRQ. Further, the percentage of female BOD members does not have an impact on FRQ. Empirical research results serve as a useful basis for enterprises to improve FRQ by considering of factors of the board of director in a more effective manner.

The Impact of Intellectual Capital on Firm Value: Empirical Evidence From Vietnam

The paper aims to investigate the impact of intellectual capital on firm value in the context of Vietnam. The research sample includes 61 manufacturing companies listed on Vietnam stock market for the period from 2013 to 2018. Three statistical methods approaches are employed to address econometric issues and to improve the accuracy of the regression coefficients include Ordinary Least Square (OLS), Random Effects Model (REM) and Fixed Effects Model (FEM). This research uses value-added intellectual capital (VAIC) to measure the intellectual capital of a firm. Value-added intellectual capital (VAIC) is considered as an effective measure by which a company uses material, financial, and intellectual capital to increase. The VAIC includes the sum of three components: Human Capital Efficiency (HCE), Structure Capital Efficiency (SCE) and Capital Employed Efficiency (CEE, including physical and financial capital). In this paper, firm value is measured by Tobin’s Q ratio. Some control variables such as leverage, firm size, growth rate, and state capital are used in the regression model that pointed out the impact of intellectual capital on a firm value. The empirical results show a statistically significant positive impact of value-added intellectual capital (VAIC) on a firm’s profitability. This evidence provides a new insight to managers on how to improve the value of manufacturing companies listed on Vietnam stock market.

The Impacts of Earnings Quality on Dividend Policy of Listed Enterprises in Vietnam

The paper examines the impact of earnings quality (EQ) on the dividend policy of enterprises in Vietnam. We consider the EQ in terms of multiple dimensions such as accruals quality, earnings persistence, revelance and timeliness of earning information. The study uses regression method according to Structural Equation Modeling (SEM), with EQ as an intermediate variable, data collected at enterprises listed on the stock market in Vietnam in the period of 2010 - 2018, with 4541 observations. The research results have found that EQ has a positive influence on dividend policy on all aspects of EQ. The empirical research results are a useful basis to help enterprises improve EQ, thereby helping business in implementing appropriate dividend policy.

Factors affecting the capital structure: a case study of real estate companies listed on stock market in vietnam

Factors affecting the capital structure: a case study of real estate companies listed on stock market in vietnam

Effects of Corporate Governance and Earning Quality on Listed Vietnamese Firm Value

The paper examines the influence of corporate governance (CG) and earning quality (EQ) on corporate value (FV) of Vietnamese enterprises. The study uses GLS regression and linear structure model using data collected from companies listing on the stock market in Vietnam during 2008-2018, with a total of 2,937 observations. The research results indicate that EQ and CG represented by the Integrated Board of Directors and the Integrated Supervisory Board have a positive effect on FV directly and indirectly. The results show that the Integrated Board of Directors has a positive effect on EQ, whereas the Integrated Supervisory Board has a negative effect on EQ. Based on the research results, we suggest that companies need to strictly comply and implement GC, so to bring down the agency cost and consequently to increase performance. The companies also should establish the Board of Director of a proper size, with financial and accounting specialty, and including women board members. The government also needs to improve the management mechanism asking for firms to prepare and publish financial statements with reliable company information, which could be provided to users. These recommendations are a useful basis to help businesses improve FV via changes in the corporate governance factors in each enterprise.

The Impact of Capital Structure on Firm Performance: Evidence from Vietnam

This paper explores the impact of capital structure on firm performance in the context of Vietnam. The paper investigates the different effect of capital structure on firm performance in state-owned and non-state enterprises listed on the Vietnam stock market. The panel data of research sample includes 488 non-financial listed companies on the Vietnam stock market for a period of six years, from 2013 to 2018. The Generalized Least Square (GLS) is employed to address econometric issues and to improve the accuracy of the regression coefficients. In this research, firm performance is measured by return on equity (ROE), return on assets (ROA), and earnings per share (EPS). The ratios of short-term liabilities, long-term liabilities, and total liabilities to total assets are proxy for capital structure. Firm sizes, growth rate, liquidity, and ratio of fixed assets to total assets are control variables in the study. The empirical results show that capital structure has a statistically significant negative effect on the firm performance. The result also shows this effect is stronger in state-owned enterprises than non-state enterprises in Vietnam. These evidences provide a new insight to managers of both state-owned and non-state enterprises on how to improve the firm's performance with capital structure.

Effects of working capital management on firm performance and firm value – A study of the fisheries industry in Vietnam

This research investigates the effects of working capital management through cash conversion cycle and its components (average receivable days - ARD, average inventory days – AID, and average payable days - APD), along with the effects of the working capital management policies on firm performance and firm value in the fisheries industry. Generalized Method of Moment (GMM) was applied with the data collected from 21 fisheries companies listed on Vietnam's stock market in the period 2008 -2012. The research found that the cash conversion cycle, average receivable days, average inventory days, and average payable days have a negative impact on firm performance (ROA) and firm value (Tobin'Q). The research results also showed that aggressive working capital policy has a negative impact, but the conservative working capital policy has a positive impact on firm performance and firm value of fisheries selected companies.

Investigating income smoothing: Empirical evidence from Vietnam's listed companies

Income smoothing is a dimension of the accounts manipulation theme that has been attracting great attention in the accounting literature. A goal of manipulation is widely ascribed to managers who wants income smoothing. The author has tried to investigate income smoothing at listed companies on the Stock Exchange. For this purpose, we chose a stratified random sample of 285 companies from formula listed companies on Vietnam Stock Exchange. We carried the mechanism for smooth and non-smoothing companies Eckel model (coefficient of variation of the distribution of profits to sales). We have compared 111 smoothing companies and 174 non-smoothing companies. The study results suggest that the Eckel index is suitable for the Vietnam stock market and shows a slight increase compared to the previous research.