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http://dx.doi.org/10.13106/jafeb.2020.vol7.no12.131

Determinants of Share Prices of Listed Companies Operating in the Steel Industry: An Empirical Case from Vietnam  

NGUYEN, Phu Ha (Faculty of Finance & Banking, College of Economics, Vietnam National University)
NGUYEN, Phi-Hung (SAP Lab, Faculty of Business, FPT University)
TSAI, Jung-Fa (Department of Business Management, National Taipei University of Technology)
NGUYEN, Thanh Tam (Faculty of Business, FPT University)
HO, Van Nguyen (Faculty of Business, FPT University)
DAO, Trong-Khoi (Faculty of Business, FPT University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.12, 2020 , pp. 131-138 More about this Journal
Abstract
In accordance with huge demand for capital to meet the expansion of steel production, there are more and more steel companies who have officially listed their stocks in HOSE and HNX. One of the key issues in successful initial public offerings and seasonal offerings for these companies is how to make stocks of steel companies become more attractive in the eyes of investors. The purpose of this research is to analyze the determinants of share prices of listed steel companies in Vietnam. This study utilized macro-economic variables, ratios and indicators representing characteristics of steel industry collected from Quarter 1/2006 to Quarter 4/2019 in association with the panel data and the feasible generalized least square (FGLS) model to evaluate the degree of these factors on the share prices. The results of the research show that ROE, Cons_rate, and CO2_rate are three main factors affecting the share prices of listed steel companies. Among which, ROE and Cons_rate have a positive effect, while CO2_rate has a negative effect on the share prices of listed steel companies. It also confirms the relationship between the environmental factor, construction industry factor and the stock prices. This lays foundations for recommendations for the future policies towards environmental protection and sustainable development.
Keywords
Stock Prices; Macroeconomic Variables; CO2 Rate; FGLS; Steel Companies; Vietnam;
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Times Cited By KSCI : 6  (Citation Analysis)
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