Seasonality in the Vietnam timeworn office
H. Swint Friday and Nhung Hoang
Abstractâ€"This study examines assuageality in the Vietnam Stock
Market Index over 10 years, since the markets establishment on July 28th, 2000 until December 31st, 2010. The study found significant gear upive returns in April and significant negative returns in July for the VN-Index. Also, the Halloween Effect or Go away in May come back Halloween twenty-four hours effect is observed in the Vietnam Stock Market Index. The authors posit these results are partially driven by the rainy season in Vietnam where monthly rain coin reaches up to 1000 mm.
Keywordsâ€" Halloween effect, January effect, Seasonality, Vietnam Stock Market. I. PREVIOUS LITERATURE VIDENCE of different seasonal effects chip in been observed in international markets around the world. Some of the more prominent effects 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 again reported observing abnormal January returns for New York Stock deputise (NYSE) and American Stock Exchange (AMEX) common stocks over the purpose 19631979 [13]. Three proposed explanations for the January effect include the tax- venting hypothesis (Roll 1983) and the gamesmanship hypothesis (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 sell stocks that fall in price towards the end of the year to generate 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 full essay, localize it on our website: Ordercustompaper.com
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