The Evaluation of Impacts of Multi Factor Model on TTC Stock Price: a Case in Real Estate Industry in Vietnam

Authors

DOI:

https://doi.org/10.24857/rgsa.v18n9-100

Keywords:

Firm Stock Price, GDP Growth, Inflationary, Risk Free Rate, Market Interest Rate

Abstract

Objectives: The objective of this study is to analyze the impact of macroeconomic factors on the stock price of a real estate firm, specifically Thanh Cong TCC, in Vietnam from 2014 to 2020. The study aims to assess both positive and negative influences of five macroeconomic variables on stock prices and to understand the overall business health reflected by stock fluctuations.

 

Methods: This study utilizes a data collection method involving statistics, analysis, synthesis, comparison, and quantitative analysis to generate qualitative comments and discussion. Econometric methods, particularly regression analysis, are employed to evaluate the quantitative results and assess the impact of macroeconomic factors on stock prices.

 

Results: The quantitative research reveals several key findings. Firstly, the stock price of Thanh Cong TCC (Y) exhibits a negative correlation with the lending rate (R) and GDP growth, indicating that higher lending rates and lower GDP growth negatively impact stock prices. Conversely, there is a positive correlation between stock prices and the risk-free rate (Rf), consumer price index (CPI), and VNINDEX, suggesting that these factors positively influence stock prices. Furthermore, the study identifies GDP growth and lending rates as having the highest impact on firm stock prices.

 

Conclusion: In conclusion, this study highlights the importance of considering macroeconomic factors in understanding stock price fluctuations in real estate firms in developing countries like Vietnam. The findings emphasize the significant impact of lending rates and GDP growth on stock prices, indicating their pivotal role in shaping the business health and overall economic conditions. By recognizing these influences, firms like Thanh Cong TCC can better navigate market dynamics and make informed strategic decisions to enhance their performance and resilience in the face of macroeconomic challenges.

Downloads

Download data is not yet available.

References

Eddy et al. (2019). The Impact of Political Risk and Macro Economics on Stock Return at Indonesia Stock Exchange(An Approach of Arbritage Pricing Theory (APT), KnE Social Sciences, 2. DOI 10.18502/kss.v3i26.5412

Ahmad, N., & Ramzan, M. (2016). Stock Market Volatility and Macroeconomic Factor Volatility, International Journal of Research in Business Studies and Management, 3(7), 37-44.

Cherif, R., & Hasanov, F. (2012). Public Debt Dynamics: The Effects of Austerity, Inflation, and Growth Shocks, IMF Working paper WP/12/230.

DTN Huy, VK Nhan, NTN Bich et al. (2021). Impacts of internal and external macroeconomic factors on firm stock price in an expansion econometric model—a case in Vietnam real estate industry, Data Science for Financial Econometrics, 189-205

Hac, L. D. et al. (2021). Enhancing risk management culture for sustainable growth of Asia commercial bank-ACB in Vietnam under mixed effects of macro factors. Entrepreneurship and Sustainability Issues, 8(3), 291.

Hang, N. T., & Huy, D. T. N. (2021). Better Risk Management of Banks and Sustainability-A Case Study in Vietnam. Revista Geintec-Gestao Inovacao e Tecnologias, 11(2), 481-490.

Hang, T. T. B., Nhung, D. T. H. et al. (2020). Where Beta is going–case of Viet Nam hotel, airlines and tourism company groups after the low inflation period. Entrepreneurship and Sustainability Issues, 7(3), 2282.

Hanh, H.T. et al. (2020) Impact of Macro Economic Factors and Financial Development on Energy Projects - Case in ASEAN Countries, Management 24(2). DOI:10.2478/manment-2019-0051

Hanh, H.T., Chuyen, B.M. et al. (2020) Challenges and Opportunities from Impacts of FDI and Income on Environment Pollution: Role of Financial Accounting Transparency in FDI Firms, Journal of Security and Sustainability Issues 10(20), 643–654. https://doi.org/10.9770/jssi.2020.10.2(22)

Ha, T.T.H, Khoa, N.B. et al. (2020) Modern Corporate Governance Standards and Role of Auditing-Cases in Some Western European Countries After Financial Crisis, Corporate Scandals and Manipulation, International Journal of Entrepreneurship 23(1S).

Hoang, N. T., & Huy, D. T. N. (2021). Determining factors for educating students for choosing to work for foreign units: Absence of self-efficacy. JETT, 12(2), 11-19.

Hoseini, S. A., & Haghighi, M. (2020). Evaluating the effect of product marketing mix on the export of mineral products. Journal of Advanced Pharmacy Education & Research| Apr-Jun, 10(2), 203-208.

Kizys,R. and Spencer,P.2007. Assessing the Relation between Equity Risk Premium and Macroeconomic Volatilities in the UK. Available at http://www.qass.org.uk/2008/vol2_1/paper3.pdf. Last visited on June 2, 2011.

Krishna, R.C. (2015). Macroeconomic Variables impact on Stock Prices in a BRIC Stock Markets: An Empirical Analysis, Journal of Stock & Forex Trading, 4(2).

Kulathunga, K. (2015). Macroeconomic Factors and Stock Market Development: With Special Reference to Colombo Stock Exchange, International Journal of Scientific and Research Publications, 5(8), 1-7.

Ihsan, H., Ahmad, E., Muhamad, I.H., & Sadia, H. (2015). International Journal of Scientific and Research Publications, 5(8)

Maskay, B. and Chapman, M. 2007. Analyzing the Relationship between Change in Money Supply and Stock Market Prices. Available at http://digitalcommons.iwu.edu/cgi/viewcontent.cgi?article=1030&context=econ_honproj&seiredir= 1#search=%22chapman,+effect+of+money+supply+on+risk+premium%22. Last visited on June 2, 2011

Nguyen Trong Diep, Nguyen xuan hai et al. (2023). Risk Management and Productivity Improvement in Construction Sector – Case in Vietnam, International Journal of Scientific Research in Science and Technology, 10(4)

Nguyen Xuan Hai et al. (2023). Environmental Law and Policies for Problems in Construction Sector, International Journal of Scientific Research in Science and Technology, 10(3)

Pham Anh Dung et al. (2024). Impacts of a Seven Factor Model on Gil Stock Price–A Case in Vietnam, Sch J Econ Bus Manag, 4

Pham Anh Dung, Phastraporn Salaisook, DTNH et al. (2023).Analysis of Organic Farming with a Case in Thailand and Vietnam Agriculture with Productivity Issues, International Journal of Scientific Research in Science and Technology(IJSRST), 10(6)

Tran Duc Thang, Nguyen Xuan Hai et al. (2023). Further Analysis on Risk Management and Solutions to Improve Productivity and Safety in Construction Sector - and Environment Protection Law in Construction Activities, Scholars Journal of Economics, Business and Management, 10(7)

Tran Duc Thang et al. (2024). Measurement of Successful Management and Leadership Via A Multi Factor Model on Bank Profit-A Case of BIDV, European Economic Letters (EEL), 14(1)

Thi Hang, N., Thi Tinh, D., Ngoc Huy, D. T., & Hong Nhung, P. T. (2021). Educating and training labor force Under Covid 19; Impacts to Meet Market Demand in Vietnam during Globalization and Integration Era. Journal for Educators, Teachers and Trainers, 12(1), 179-184. doi: 10.47750/jett.2021.12.01.023

Thi Hoa, N., Hang, N. T., Giang, N. T., & Huy, D. T. N. (2021). Human resource for schools of politics and for international relation during globalization and EVFTA. Ilkogretim Online, 20(4), 1386-96.

Trong, H., & Ngoc, C. N. M. (2008). Analysis of research data with SPSS. Hong Duc Publishing House, Ho Chi Minh City.

Van Tuan, P. et al. (2021). Impacts of Competitor Selection Strategy on Firm Risk-Case in Vietnam Investment and Finance Industry. Revista Geintec-Gestao Inovacao E Tecnologias, 11(3), 127-135

Quy, V.T., & Loi, D.T.N. (2016). Macroeconomic factors and Stock Price – A Case Of Real Estate Stocks on Ho Chi Minh Stock Exchange, Journal of Science Ho Chi Minh City Open University, 2(18), 63-75.

Saeed, S., & Akhter, N. (2012). Impact of Macroeconomic Factors on Banking Index in Pakistan, Interdisciplinary Journal of Contemporary Research in Business, 4(6), 1200-1218.

https://www.sbv.gov.vn

https://nif.mof.gov.vn

Downloads

Published

2024-05-07

How to Cite

Viet, T. X., Lanh, N. V., & Tha, T. H. (2024). The Evaluation of Impacts of Multi Factor Model on TTC Stock Price: a Case in Real Estate Industry in Vietnam . Revista De Gestão Social E Ambiental, 18(9), e06672. https://doi.org/10.24857/rgsa.v18n9-100

Issue

Section

Artigos