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

By Dao Le Trang Anh, Christopher Han-Kie Gan. 2020

212 citations recorded by the source corpus.

Purpose: This 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/approach: This 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 Findings: The 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/implications: The 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/value: This 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 © 2020, Emerald Publishing Limited

Subfields: Economics and Econometrics, Finance, Global and Planetary Change

View Paper: https://www.semanticscholar.org/paper/05318a3f1f75d157d4778cc09e3b288a9a0a6a42