Covid 19 pandemic and Abnormal Stock Returns of listed companies in Vietnam

• Published in: Cogent business & management Vol. 8; no. 1; pp. 1 - 18
• Main Authors: Dang Ngoc, Hung, Vu Thi Thuy, Van, Le Van, Chi
• Format: Journal Article
• Language: English
• Published: Abingdon Taylor & Francis 2021; Cogent; Taylor & Francis Ltd; Taylor & Francis Group
• Subjects: Coronaviruses; COVID-19; Covid-19 pandemic; earnings; event study; firms’ firms' performance; Pandemics; Rates of return; stock return; Vietnam
• ISSN: 2331-1975; 2331-1975
• DOI: 10.1080/23311975.2021.1941587

Covid-19 pandemic is affecting the health of the public, and it is also impacting business and economy. The main objective of this paper is to investigate the impact of Covid-19 pandemic on listed firms' performance and the abnormal stock returns in Vietnam. To study the impact of Covid-19 on firms' performance, we collected data about announced earnings on Q1/2020 and Q4/2019 of 714 enterprises and made comparison. The results revealed the enormous impacts of Covid-19 pandemic on the business performance. However, the level of influence varies among sectors. To study the impact of Covid-19 on the abnormal stock returns, the study employed the event research method with 3 events related to Covid-19 pandemic in Vietnam. A sample of 364 companies listed on Ho Chi Minh Stock Exchange (HOSE) was utilized. The findings revealed that the Covid-19 event affects the abnormal returns of stocks and the level of influence varied from each stage of Covid-19 prevention measure in Vietnam. The degrees of influence of the Covid-19 event on each stock were also different. The paper concluded that Covid-19 pandemic information can be used to predict stocks' prices.