Vietnamese Stock Market Research Articles

Big-Data Technology in Finance: Quality of Stock-Trading Information in Vietnamese Stock Market

Quantitative finance is a field of applied research where the data is important information investors’ profitability and financial risk of financial assets in the processes of decision-making. And financial institutions and securities have applied big-data technologies in stock market to exploit useful information for investors using mobile stock-trading apps. The standardization of database from the raw data of companies’ financial statements, statistical reports and stock-trading data support to enhance data mining analysis by predictive patterns with high feasibility for useful information for investors’ decision-making. And quantitative tools of predictive patterns for financial advanced indexes test expected market return and favourable market timing for buying or selling stocks in stages of market cycle and prediction of market risk before market-trend crash. On the development of securities’ mobile stock-trading apps, the addition of new advanced indexes increases the quality of stock-trading information in Vietnamese stock market generally, seeks competitive advantages of market segments for securities particularly when they change big-data technology in mobile stock-trading apps. This contribution has a better using FinTech combined with stock-trading algorithms to provide more useful and confident information of optimal profitability and financial risk management that individual and institutional investors catch up the trend of big-data technology.

Enhancing the sustainable development of investment funds: a study of the stock market in Vietnam

Stock investment funds play an important role in the development of the stock market by creating demand for the market, while increasing the professionalism of market activities. With expertise, the ability to access and process information effectively, investment funds will bring benefits to all participants. The role of stock investment funds becomes even more important in developing countries where market information is often imperfect and the state's warning systems and control capabilities are limited. In Vietnam, the strong growth of the stock market over the past 10 years has been the foundation for the formation and development of stock investment funds. However, Vietnam's fund industry has only started to take shape in the last 5 years. Up to now, there are only 24 domestic closed-end stock investment funds operating on the Vietnamese stock market, with limited size and diversity of fund products compared to the market potential. At the same time, the stock investment funds themselves have not yet promoted their role in attracting investment capital, leading individual investors, and contributing to the stability of the stock market during their existence. Keywords: Investment Fund, Stocks, Vietnam.

MỘT SỐ VẤN ĐỀ PHÁP LÝ TRONG VIỆC XÂY DỰNG PHÁP LUẬT VỀ CHỨNG CHỈ LƯU KÝ KHÔNG CÓ QUYỀN BIỂU QUYẾT TẠI VIỆT NAM

The legal framework governing non-voting depository receipts (NVDRs) in Vietnam is currently still basic and requires amendments for successful issuance and trading in the Vietnamese stock market. This article aims to analyze key aspects to propose recommendations for enacting comprehensive legislation regarding NVDRs. Its scope for research covers: (i) identification NVDRs, their legal characteristics, and their role in the Vietnamese context; (ii) examining the relationships between parties involved in NVDR transactions and the connection between NVDRs and other types of securities; (iii) identifying essential considerations for establishing NVDR-related regulations in Vietnam.

The impact of working capital management to profitability of chemicals companies listed on the Vietnamese stock market

Working capital plays an important role in ensuring business continuity. Effective management of working capital will directly affect the success of the business. In contrast, poor management will lead to a lack of financial ability, difficulty in payment, reduced sales leads to reduced profits. This paper examines the impact of working capital management on the profitability of chemical companies listed on the Vietnamese stock market. Data sources used in the analysis are from the financial statements of 32 chemical companies listed on Hanoi and Hochiminh City Stock Exchange form 2019 to 2023. Through the results of SPSS 20, the authors assessed the impact of working capital management to profitability and recommendations to improve working capital management of chemical companies listed on the stock market of Vietnam.

Determinants of business performance of listed information technology companies in Vietnam

The information technology (IT) industry is rapidly growing and playing a significant role in modern society, impacting almost every aspect of life. The operations of IT businesses have been increasing and developing rapidly in recent years. For a business to achieve sustainable development, its production and business activities must be as efficient as possible. This paper aims to determine the impact of various factors on business performance based on data collected from the financial reports of 14 listed IT companies on the Vietnamese stock market from 2019 to 2023. The paper employs a regression model using Stata17 software, and the results show that two factors, Capital structure and Age of the company, have a significant impact on business performance; while two other factors, Fixed asset investment and Liquidity, have no significant impact on business performance. Based on the research findings, the authors provide several recommendations to help IT companies improve their business performance.

Is CEO power linked to corporate social responsibility disclosure? Evidence from an emerging economy

AbstractThe research aims to analyze the influence of Chief Executive Officer (CEO) power factors on corporate social responsibility (CSR) disclosure by listed companies on the Vietnamese stock market. To examine the relationship between CEO power and CSR disclosure (CSRD), our study used the generalized method of moments (GMM) estimation method with panel data from 210 listed companies on the Vietnamese stock market during the period 2015–2022. The research results indicate that factors such as duality, tenure, share ownership, and CEO compensation reduce the level of CSR disclosure by companies. On the other hand, CEO education and age show a positive relationship with disclosure level. The empirical results of this study provide a solid foundation for managers to establish effective corporate governance mechanisms and enhance the quality of sustainable reporting by companies.

Tác động của gian lận báo cáo tài chính đến giá trị thị trường doanh nghiệp niêm yết tại Việt Nam: Vai trò điều tiết của hội đồng quản trị

One of the most alarming issues today is the transparency of financial reporting among listed companies. Nowadays, the role of the board of directors is becoming increasingly important in regulating and overseeing corporate activities to mitigate the impact of financial reporting fraud on the market value of listed companies. The sample data includes 426 listed companies on the Vietnamese stock market from 2012 to 2022 with 4,684 observations. The methods used are OLS, FEM, REM and S-GMM. The research results indicate that the board of directors plays a regulatory role in influencing the impact of financial reporting fraud on the market value of listed companies. Specifically, duality and equity ownership increase the impact, whereas independence reduces it.

The effects of managerial gender and education on firm performance

The role of women has been increasingly affirmed as gender equality has become the norm, particularly when it comes to how firms should be managed. In addition, education instills knowledge that could change managerial perspectives, thus affecting the ways they manage firms. This study uses a dataset covering 617 non-financial firms listed on the Vietnamese stock market from 2010 to 2021 to examine the impact of managerial gender and education on firm performance, measured in accounting- and market-based values. The System Generalized Method of Moments was employed to address endogeneity and other defects normally associated with panel data. The results reveal that having female chief executive officers (CEOs) positively affects firms. Additionally, a CEO’s educational background positively affects both accounting- and market-based measures. The study provides new evidence of the positive effects of female CEOs and highly educated CEOs on firm performance compared with some extant studies in Vietnam. Based on the research findings, relevant suggestions are proposed regarding the welcoming features of CEOs in managing firms in Vietnam.

Can sustainable supply chain strategies of company enhance for mitigation of risk damages and long-term resilience? An empirical analysis for the context of COVID-19 pandemic

This study aims to investigate the effects of sustainable supply chain management strategies of the companies on mitigation of risk damages and long-term resilience through the evaluation of stock abnormal returns of companies listed on the stock markets based on the evidence from the context of COVID-19 pandemic. The empirical analysis was conducted for 63 companies listed on Vietnamese stock market, where plays as an example for emerging stock markets. The data were collected from the quarterly official financial statements of 63 companies between January 2020 and March 2023. Various regression models, including Ordinary Least Squares, Fixed Effects Model, Random Effects Model, and Generalized Least Squares were explored. Found results indicated that the implementing sustainable supply chain management strategies might help to mitigate the negative impact on stock price volatility during the COVID-19 pandemic, but it has not been the critical tool to improve the companies’ resilience ability in post pandemic yet. JEL Codes: F65, F63, G11, G34, G38Codes of Sustainable Development Goals: SDG17, SDG12, SDG02

Does Corporate Reputation Still Affect the Cost of Equity in an Emerging Market? Evidence from Managerial Overconfidence

Purpose: This paper examines the relationship between corporate reputation, managerial overconfidence, and the cost of equity in the context of Vietnam - a fast-growing emerging market. Design/methodology/approach: The paper employs Pooled Ordinary Least Square, Fixed Effect Model and Random Effect Model to test the effects of corporate reputation and managerial overconfidence on the cost of equity on 391 non-financial Vietnamese listed firms during 2011 and 2020. In addition, Principal Component Analysis is also applied for calculating the corporate reputation score. Findings: The finding shows that firms with higher corporate reputation are associated with a lower cost of equity. The results also indicates that despite the insignificant relationship between managerial overconfidence and the cost of equity, firms operated by overconfident managers can promote the negative effect between corporate reputa-tion and the cost of equity. In addition, the more reputable corporates increase, the lower the cost of equity will be. Research limitations/implications: Firms in Vietnam can manage the cost of equity better. Furthermore, based on the managers' characteristics and the state of corporate reputation, investors can make appropriate investment decisions. Originality/value: Prior research shows that corporate reputation is negatively related to the implied cost of equity. However, in Vietnamese stock market, under managerial overconfidence, the association between corporate reputa-tion and the cost of equity is also greatly affected. Furthermore, changes in corporate reputation also have certain effects on the cost of equity, especially when corporate reputation is enhanced every year.

Characteristics of Domestic Individual Investors in Vietnam Stock Market

Individual investors in the Vietnamese stock market have many different characteristics from individual investors in stock markets in other countries, especially developed countries. Outstanding features include: (1) domestic individual investors always occupy the leading position and dominate the market; (2) the transactions of this type of investors have the potential to change the market structure; However (3) they are strongly influenced by stock market sentiment and (4) most investors are still very young, have little experience, and have limited investment and capital management knowledge. leading to major fluctuations in the market that stem from this group of investors.

Stock crash and how it spreads over the Vietnamese stock market

Stock crash and how it spreads over the Vietnamese stock market

Impact of covered warrant issuance on underlying stocks of listed companies in Vietnam

Nowadays, covered warrants (CWs) have emerged as a popular financial instrument in the Vietnamese stock market, offering investors promising opportunities for profitable returns. However, these instruments also carry inherent risks, necessitating a thorough understanding of their characteristics. This research aims to evaluate the impact of CW issuance on the price and liquidity (measured by trading volume and bid-ask spread) of underlying stocks on the Vietnamese stock market. The study employs the event study methodology and Wilcoxon test to examine whether abnormal returns, trading volume, and bid-ask spreads change after CW issuance. The research uses secondary data of 113 active CWs, based on 20 underlying stocks listed on HNX and HOSE and are issued from April 2023 to January 2024. The findings reveal no significant change in abnormal returns; however, trading volume and bid-ask spreads exhibit noticeable alterations following CW issuance. These results provide valuable insights for investors to consider relevant factors when making informed investment decisions.

Ước lượng ma trận hiệp phương sai với trọng số Shrinkage cân bằng trong lựa chọn danh mục đầu tư: Nghiên cứu thực nghiệm trên thị trường chứng khoán Việt Nam

Portfolio optimization based on the process of estimating the covariance matrix is one of the new approaches. In this article, the author has conducted an analysis and evaluation of various covariance matrix estimators to measure their effectiveness in investment activities. The results of the empirical study on over 400 listed stocks on the Vietnamese stock market from January 2011 to January 2024 have shown that the covariance matrix estimator with balanced shrinkage weight yields significantly superior results across all three portfolio performance metrics: Sharpe ratio, Sortino ratio, and Calmar ratio, compared to the other seven estimators divided into three groups including the LW Shrinkage method group, the factor model group, and the traditional method group. The study’s findings also aim to further encourage investors to expand research on covariance matrix estimation in selecting optimal investment portfolios.

The Factors Influencing The Stock Prices of Construction Industry Enterprises: An Empirical Study in Vietnam

Purpose: The construction sector is essential for the economic development of a country. This industry is likewise a key player and has a significant influence on the stock market. Hence, it is necessary to analyze the variables that influence the stock prices in the construction sector, as this will enable investors to maximize profits and mitigate risks. Theoretical framework: This study evaluates the impact of macro factors and internal factors on the stock prices of the construction industry. Design/Methodology/Approach: This study utilizes quarterly financial reports from 56 construction industry enterprises in the Vietnamese stock market during the period from 2016 to 2022 to examine the factors affecting the stock prices of this sector. Findings: The results of the analysis indicate that the Random Effects Model (REM) is the most appropriate model, with factors such as the Consumer Price Index (CPI), Earnings Per Share (EPS), firm size (SIZE), and Price-Earnings ratio (PE) all having a positive impact on the stock prices of the construction industry. Research, Practical & Social implications: Based on these findings, the article provides recommendations for investors and relevant industry stakeholders. Originality/value: This article has conducted extensive analyses of factors influencing the stock prices of construction industry enterprises. The authors also provide suggestions for investors and relevant industry stakeholders to make investment decisions.

Corporate Governance in Listed Firms: Does Market Competition Make a Difference?

Corporate Governance in Listed Firms: Does Market Competition Make a Difference?

Tác động của quản trị lợi nhuận đến rủi ro sụt giảm giá cổ phiếu trên thị trường chứng khoán Việt Nam

Recent global turnoils has been significantly affected the Vietnamese stock markets due to its lack of efficiency, which can potentially lead to increasing stock price crash risks. This study examines the impacts of earning management on stock price crash risk for 202 listed companies on the Vietnames Stock Market from 2013 to 2022. Our empirical analysis reveals a positive association between earnings management and the subsequent year’s stock price crash risk. Further analysis suggests this effect is statistically significant only for upward earnings management, leading to reported earnings exceeding actual profitability. These findings highlight the low efficiency of the Vietnamese stock market, characterized by limited information transparency and a high proportion of individual investors, who tend to overreact to earnings information. Based on these results, the study offers policy recommendations for the Vietnamese stock market.

Classification for Dividend Payout in Vietnam Stock Exchange Market: A Comparative Review of Machine Learning Algorithms

This study explores the application of machine learning models to predict dividend payouts for publicly listed companies in the Vietnamese stock market. The authors compared various machine learning algorithms to identify the most suitable one for this task. Based on our evaluation, the test shows that the Random Forest algorithm outperformed other methods in terms of accuracy, F1 score, and time efficiency. Furthermore, we analyzed the feature’s importance to understand the key factors driving dividend payouts. The results can help investors, managers, and government agencies make informed decisions and improve financial market transparency. The study also highlights the potential of using machine learning algorithms to automate and enhance the credit rating process, leading to more accurate and real-time assessments of business creditworthiness in Vietnam.

Corporate governance and corporate carbon disclosures: The moderating role of earnings management

AbstractThis research aims to explore the relationship between corporate governance (CG) and carbon disclosure (CD) and the moderating role of earnings management (EM) in this relationship. The model was built based on legitimacy theory, upper echelons theory, and agency theory. We employed a two‐step generalized method of moments (GMM) regression and conducted robust tests to reaffirm the results using panel data from 134 listed companies in the Vietnamese stock market from 2015 to 2022. Our findings indicate that larger board sizes, boards with more independent members or the presence of a CEO who concurrently serves as the chairman of the board can potentially decrease the likelihood of CD, while companies with a higher proportion of female board members or regular board meetings may tend to publish more carbon information. Furthermore, EM can moderate the relationship between CG and CD, and this variable exhibits high reliability in the model. This research adds to the vast body of existing knowledge about the effectiveness of CG by investigating how different dimensions of CG affect corporate CDs in Vietnam, especially, to the best of the authors' knowledge, this is the first research attempting to provide the empirical result of the moderating role of EM in the relationship between CG and corporate CDs.

Impacts of inflation on the Vietnamese stock market in economic turbulence

This study employs the GARCH model to examine how inflation affects the Vietnamese stock market. The analysis uses 2001-2022 data from the General Statistics Office and the Ho Chi Minh Stock Exchange (HoSE). This time frame encompasses various market cycles, including the recent financial crises, which alter the characteristics of stock variance. The findings reveal that inflation has a strong impact on the volatility of stock indexes because the psychological herd of the stock players has a huge impact on market volatility such that it weakens the market, leading to instability due to stock prices being blown up too high or depressed too low. Herd mentality facilitates price manipulation, stock price manipulation, and speculation. When the demand for capital flows into the secondary market, a surge has led to a large amount of money in circulation. This has caused a high level of inflation. The findings indicate that a one percent increase in inflation is associated with a 6.692 percent increase in the VN index, suggesting that Vietnam’s stock market returns can hedge against inflation. Yet, the popularity of speculative investments necessitates that the Vietnamese government not only address inflation but also improve financial regulations and stock market oversight.