Stock market returns and liquidity during the COVID-19 outbreak: evidence from the financial services sector in Vietnam
Asian Journal of Economics and Banking (AJEB)
; 5(3):324-342, 2021.
Article
in English
| ProQuest Central | ID: covidwho-1574101
ABSTRACT
PurposeThis paper aims to explore the influence of the COVID-19 outbreak and the Government's disease control measures on the stock returns and liquidity of Vietnam-listed companies in the financial services sector.Design/methodology/approachThe authors have conducted a panel data regression analysis using data from 50 banking, insurance and finance companies listed in Vietnam's two biggest stock exchanges (HNX and HOSE) within the period from January 30th, 2020 to May 15th, 2021.FindingsThe regression results indicate that the daily growth in the total number of confirmed cases caused by COVID-19 has significant negative effects on the stock market returns and liquidity. Nevertheless, the Government's imposition of lockdown yields significant and positive outcomes on stock performance. In addition, the study reveals remarkable differences in returns of large-cap and small-cap stocks under the impact of the COVID-19 pandemic.Research limitations/implicationsThe study indicates government and regulators should act more actively to limit the outbreak of the virus, improve investor confidence as well to support the financial services industry and deal with the outbreak of the pandemic later.Originality/valueThis is the first study to explore the influence of the COVID-19 outbreak and the Government's disease control measures on the stock returns and liquidity of Vietnam-listed companies in the financial services industry.
Business And Economics--Banking And Finance; COVID-19; Daily stock returns; Liquidity; Financial services industry; Vietnam; Stock exchanges; Securities markets; Pandemics; Epidemics; Medical research; Hospitals; Black swan event; Transportation services; Coronaviruses; Financial services; Disease transmission; United States--US; China; 62211:General Medical and Surgical Hospitals
Full text:
Available
Collection:
Databases of international organizations
Database:
ProQuest Central
Language:
English
Journal:
Asian Journal of Economics and Banking (AJEB)
Year:
2021
Document Type:
Article
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