Control of Emerging-Market Target, Abnormal Stock Return: Evidence in Vietnam

TL;DR

This paper investigates how emerging-market targets, specifically in Vietnam, influence abnormal stock returns, highlighting the impact of foreign direct investment and M&A activities from 1995 to 2015.

Contribution

It provides new insights into the relationship between FDI, M&A, and stock returns in Vietnam, an emerging market, filling a gap in existing research.

Findings

FDI and M&A activities significantly affect stock returns in Vietnam.

Emerging-market targets are associated with abnormal stock return patterns.

The study covers data from 1995 to 2015, showing long-term trends.

Abstract

Joining with the upward trend of Global Foreign direct investment and FDI in emerging economies and emerging Asian economies, FDI to Vietnam, especially M&As have increased significantly in both numbers and value of deals from 1995 to 2015...