What affects stock market liquidity? : an empirical study on the stock market in Vietnam | |
| Author | Cao Thi Phuong Mai |
| Call Number | AIT RSPR no.SM-05-101 |
| Subject(s) | Stock exchanges--Vietnam Liquidity (Economics) |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business and Administration. School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-05-101 |
| Abstract | The stock market development plays the most important and strategic role in the economic development of any country. Especially in developing countries, they are focusing on developing the stock market as their financial sector is still lagging behind other developed countries in the context of increasing globalization. The development of stock market can be measured by its liquidity. And there have been various studies about stock market liquidity in many countries in which they suggested that liquidity can be affected by ownership structure and dividend policy of the firms, legal framework etc... This paper is an empirical study about liquidity of stock market in Vietnam in the period starting from 2001 to 2004. Having been under operation for approximately 5 years, the Vietnamese stock market is the youngest one in this region. Stock trading activities have been remaining anemic and meaningless in the economy. With the data of almost the whole population of 25 listed companies on HOSTC being analyzed by regression and nonparametric statistics tests, this study provides evidence showing that the liquidity of Vietnamese stock market is positively and significantly affected by the number of shares outstanding. On the contrary, director holdings have a negative effect on liquidity. Meanwhile, inconsistent with previous studies conducted in other markets, dividend yield, price volatility and domestic holdings do not have any significant effect on liquidity of stock market. |
| Year | 2005 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-05-101 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Venkatesh, Sundar |
| Examination Committee(s) | Kouwenberg, Roy;Singha Chiamsiri |
| Scholarship Donor(s) | AIT Fellowship |
| Degree | Research report (M.Sc.) - Asian Institute of Technology, 2005 |