Impact of Covid-19 outbreak on investor's herding behavior in Vietnam stock market
Main Article Content
Abstract
This paper uses linear and non-linear model proposed by Chang et al. (2000) to detect investor's herding behavior on the stock market at the time before, during and after the Covid-19 outbreak in Vietnam. The results showed the existence of herding behavior in the nonlinear model, stronger more in the market updown and the herding behavior on VN30 stocks group was stronger than that of other stocks on Ho Chi Minh City Stock Exchange during the period 2020-2021. In the period 2020-2021, Vietnam has four outbreaks of Covid-19. At the 3rd outbreak, the herding behavior on VN30 was still stronger and increased more during the market uptrend. Furthermore, these results imply to increase information transparency, improve the sense of compliance with professional ethics and punish the cases of false information disclosure on the stock market to reduce herding behavior. The results provide more information for investors interested in Vietnam's stock market. Corporate administrators and regulatory agencies can also refer to these results to adjust the information transparency requirements for enterprises.
Article Details
Keywords
Covid-19, Herding behavior, Stock market, Vietnam
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