Stock Market Reactions to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership's Approval: Evidence from Vietnam

We examine the stock market performance of Vietnam's listed firms in response to the country's approval of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Employing an event study methodology, we first calculate the abnormal returns of all listed Vietname...

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Bibliographic Details
Published in:Journal of economic integration 2021, 36(3), , pp.462-490
Main Authors: Ha, Son Tung, Pham, Thi Hong Hanh, Nguyen, Thi Nguyet Anh
Format: Article
Language:English
Subjects:
Abnormal returns
Agreements
Companies
Economics
Economics and Finance
Heterogeneity
Humanities and Social Sciences
New stock market listings
Partnerships
Securities markets
Stock exchanges
Tariffs
Trade agreements
Trade liberalization
Trade policy
Trans-Pacific Partnership Agreement
경제학
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Summary:We examine the stock market performance of Vietnam's listed firms in response to the country's approval of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Employing an event study methodology, we first calculate the abnormal returns of all listed Vietnamese firms around the CPTPP's approval date. Then, we attempt to link these abnormal returns to firms' characteristics. We find evidence that the announcement of the CPTPP's approval is associated with positive abnormal returns for Vietnam's listed firms. We also find considerable heterogeneity in the magnitude and pace of the impacts of the CPTPP's approval on market returns across Vietnam's two stock exchanges. However, we fail to reject the null hypothesis that the market did not react to the CPTPP's approval at the sectoral level.
ISSN:1225-651X
1976-5525
DOI:10.11130/JEI.2021.36.3.462