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 memory Market Index over 10 years, since the markets establishment on July 28th, 2000 until December 31st, 2010. The study found large gear upive returns in April and significant negative returns in July for the VN-Index. Also, the Halloween feeling or Go away in May fall back Halloween twenty-four hours entrap is observed in the Vietnam parentage Market Index. The authors posit these results are partially driven by the rainy season in Vietnam where monthly rain come across reaches up to 1000 mm. Keywords Halloween effect, January effect, Seasonality, Vietnam Stock Market. I. PREVIOUS LITERATURE VIDENCE of unalike seasonal effects chip in been observed in international markets around the world. Some of the more prominent eff ects include 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 once more reported observing abnormal January returns for New York Stock replace (NYSE) and American Stock Exchange (AMEX) common stocks over the manipulation 19631979 [13]. Three proposed explanations for the January effect include the levy- venting possibleness (Roll 1983) and the gamesmanship speculation (Haugen and Lakonishok 1987) [3], [18]. The tercet proposed cause of the January Effect i s the window dressing hypothesis first intro! duced by Haugen and Lakonishok (1987) [7]. The tax-lossing hypothesis states that individual investors tend to dole out stocks that fall in price towards the end of the year to draw 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 respectable essay, localize it on our website: BestEssayCheap.com

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