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Does the market pressure increase during the Covid-19 in Vietnam? Evaluating the impacts from government responses

Author

Listed:
  • Bao Doan

    (RMIT University Vietnam)

  • Duc Hong Vo

    (Ho Chi Minh City Open University)

Abstract

Efficient stock price and liquidity are heavily affected by the extreme order imbalances, being the difference between the buy- and sell-initiated trades, leading to the market pressure. Data from Vietnam's stock market during Covid-19 is used to examine the effect of various government responses and policies during the Covid-19 pandemic on buying/selling pressure. Our findings indicate that the government responses and economic support are associated with an increase in the order imbalance or an increase in the buying pressure. In contrast, a country's risk from easing the stringency of policies leads to selling pressure. Regarding the impact of containment and closure policies, we find that the buying pressure is more likely associated with policies on workplace closing, restrictions on gatherings, and closed public transport than the stay-at-home requirements.

Suggested Citation

  • Bao Doan & Duc Hong Vo, 2022. "Does the market pressure increase during the Covid-19 in Vietnam? Evaluating the impacts from government responses," Economics Bulletin, AccessEcon, vol. 42(2), pages 388-399.
    • Handle: RePEc:ebl:ecbull:eb-20-01241
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    References listed on IDEAS

    as
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    3. Niels Joachim Gormsen & Ralph S J Koijen & Nikolai Roussanov, 0. "Coronavirus: Impact on Stock Prices and Growth Expectations," The Review of Asset Pricing Studies, Society for Financial Studies, vol. 10(4), pages 574-597.
    4. Frino, Alex & Lecce, Steven & Segara, Reuben, 2011. "The impact of trading halts on liquidity and price volatility: Evidence from the Australian Stock Exchange," Pacific-Basin Finance Journal, Elsevier, vol. 19(3), pages 298-307, June.
    5. Lee, Charles M C & Ready, Mark J, 1991. "Inferring Trade Direction from Intraday Data," Journal of Finance, American Finance Association, vol. 46(2), pages 733-746, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Order imbalance; Government responses; Containment and closure policies; Covid-19; Vietnam;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G1 - Financial Economics - - General Financial Markets

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