Investor sentiment research: an empirical on Ho Chi Minh stock exchange (Vietnam)

Abstract

Behavioural finance is a rapidly growing field that uses knowledge from psychology to understand how human behaviour affects investors' decisions in the financial markets in general and the stock market in particular. The study of investor sentiment is familiar in stock markets with a long and thriving history. However, research on the issue is relatively new and unpopular for a young market like Vietnam. Especially with the current economic situation and political instability, the stock market cannot help but be affected. These things will significantly impact the psychology of investors in the market. Therefore, this study was conducted to identify and measure the impact of factors affecting investor sentiment. In this study, we used the analytical method of Baker & Wurgler (2006). The research model was inherited from Doan Thi Cam Van (2022) to measure the impact of the factors on the change in investor sentiment in the period 2007 - 2022 on the HOSE stock exchange. Tested factors include the Number of the first-time securities listed (NFDL), Return on the first-day securities listed (RFDL), Market turnover rate (TURN), Number of advance and decline in securities price (ADDE), and Foreigner trading (FOT).