Seasonality Effect In Vietnam Stock Market

asonaInternational Conference on Management, Economics and Social Sciences (ICMESS2011) Bangkok Dec., 2011 Seasonality in the Vietnam timeworn office H. Swint Friday and Nhung Hoang AbstractThis study examines assuageality in the Vietnam conduct Market Index over 10 years, since the markets establishment on July 28th, 2000 until December 31st, 2010. The study found authoritative gear upive returns in April and significant negative returns in July for the VN-Index. Also, the Halloween fix or Go away in May stick back Halloween twenty-four hours raise is observed in the Vietnam job Market Index. The authors posit these results are partially driven by the rainy season in Vietnam where monthly rain attain reaches up to 1000 mm. Keywords Halloween effect, January effect, Seasonality, Vietnam Stock Market. I. PREVIOUS LITERATURE VIDENCE of assorted seasonal cause chip in been observed in international markets around the world. Some of the more prominent effects i nclude the January Effect and the Halloween effect. Wachetel (1942) was the scratch line to inscription the January effect in stock returns [16].

The phenomenon garnered little attention until Keim (1983) over again reported observing abnormal January returns for New York Stock exchange (NYSE) and American Stock Exchange (AMEX) common stocks over the blueprint 19631979 [13]. Three proposed explanations for the January effect include the evaluate- venting guessing (Roll 1983) and the gamesmanship opening (Haugen and Lakonishok 1987) [3], [18]. The tercet proposed cause of the January Effect is the window dressing hypothesis first introduced by Haugen and Lakonishok (1987) [! 7]. The tax-lossing hypothesis states that individual investors tend to give stocks that fall in price towards the end of the year to buckle under groovy losses to offset and avoid tax on smashing gains. Similarly, more volatile stocks also generate tax loss selling opportunities throughout the year. The selling pressure on these stocks subsides at the end of the year...If you want to get a beneficial essay, localize it on our website: BestEssayCheap.com

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