The impact of policy uncertainty on stock liquidity in Vietnam’s M&A market
This study investigates the impact of policy uncertainty on stock liquidity in Vietnam’s M&A market. Using a comprehensive sample of M&A acquisition deals over the 2005-2020 period, we find that policy uncertainty is negatively associated with stock liquidity of target firms, indicating that...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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The University of Danang
2023-06-01
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| Series: | Tạp chí Khoa học và Công nghệ |
| Subjects: | |
| Online Access: | https://jst-ud.vn/jst-ud/article/view/8387 |
| _version_ | 1797205573894144000 |
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| author | Dang Huu Man Nguyen Manh Toan |
| author_facet | Dang Huu Man Nguyen Manh Toan |
| author_sort | Dang Huu Man |
| collection | DOAJ |
| description | This study investigates the impact of policy uncertainty on stock liquidity in Vietnam’s M&A market. Using a comprehensive sample of M&A acquisition deals over the 2005-2020 period, we find that policy uncertainty is negatively associated with stock liquidity of target firms, indicating that firms should increase their information disclosure to improve the information environment during periods of increased asymmetric information due to policy uncertainty. We also find that higher levels of policy uncertainty lead to lower market valuations of target firms, reflecting greater market skepticism about the completion of the transaction and related synergy benefits. This study highlights the importance of transparency in improving stock liquidity and suggests that policymakers need to consider the impact of domestic economic and investment policies on M&A activity and stock liquidity in Vietnam. |
| first_indexed | 2024-04-24T08:53:17Z |
| format | Article |
| id | doaj.art-62e7c0fb628846948f8a38c2296b9cc4 |
| institution | Directory Open Access Journal |
| issn | 1859-1531 |
| language | English |
| last_indexed | 2024-04-24T08:53:17Z |
| publishDate | 2023-06-01 |
| publisher | The University of Danang |
| record_format | Article |
| series | Tạp chí Khoa học và Công nghệ |
| spelling | doaj.art-62e7c0fb628846948f8a38c2296b9cc42024-04-16T09:14:09ZengThe University of DanangTạp chí Khoa học và Công nghệ1859-15312023-06-019910310.31130/ud-jst.2023.117E8381The impact of policy uncertainty on stock liquidity in Vietnam’s M&A marketDang Huu Man0Nguyen Manh Toan1The University of Danang - University of Economics, Danang, VietnamThe University of Danang - University of Economics, Danang, VietnamThis study investigates the impact of policy uncertainty on stock liquidity in Vietnam’s M&A market. Using a comprehensive sample of M&A acquisition deals over the 2005-2020 period, we find that policy uncertainty is negatively associated with stock liquidity of target firms, indicating that firms should increase their information disclosure to improve the information environment during periods of increased asymmetric information due to policy uncertainty. We also find that higher levels of policy uncertainty lead to lower market valuations of target firms, reflecting greater market skepticism about the completion of the transaction and related synergy benefits. This study highlights the importance of transparency in improving stock liquidity and suggests that policymakers need to consider the impact of domestic economic and investment policies on M&A activity and stock liquidity in Vietnam.https://jst-ud.vn/jst-ud/article/view/8387policy uncertaintystock liquiditym&asynergycar |
| spellingShingle | Dang Huu Man Nguyen Manh Toan The impact of policy uncertainty on stock liquidity in Vietnam’s M&A market Tạp chí Khoa học và Công nghệ policy uncertainty stock liquidity m&a synergy car |
| title | The impact of policy uncertainty on stock liquidity in Vietnam’s M&A market |
| title_full | The impact of policy uncertainty on stock liquidity in Vietnam’s M&A market |
| title_fullStr | The impact of policy uncertainty on stock liquidity in Vietnam’s M&A market |
| title_full_unstemmed | The impact of policy uncertainty on stock liquidity in Vietnam’s M&A market |
| title_short | The impact of policy uncertainty on stock liquidity in Vietnam’s M&A market |
| title_sort | impact of policy uncertainty on stock liquidity in vietnam s m a market |
| topic | policy uncertainty stock liquidity m&a synergy car |
| url | https://jst-ud.vn/jst-ud/article/view/8387 |
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