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The Relationship Between Accounting Information in the Financial Statements and the Stock Returns of Listed Firms in Vietnam Stock Exchange

Author

Listed:
  • Ngoc Hung Dang
  • Thi Viet Ha Hoang
  • Manh Dung Tran

Abstract

This study is conducted to analyse the relationship between accounting information in the financial statements and the stock returns of listed firms in Vietnam Stock Market. Using OLS, FEM, REM, GLS, and GMM regression models, the study examines the relationship of earnings, volatility in the rate of return, size, levering ratios and growth rates to the stock returns of 274 firms in the period from 2012 to 2016. Findings from the study show that the rate of return, the change in the rate of return, gearing ratio and growth rate are positively correlated to the stock returns, while the size of firm by assets is negatively related to stock returns. Based on the research¡¯s results, the authors also provide some recommendations for investors, firm management and policy makers.

Suggested Citation

  • Ngoc Hung Dang & Thi Viet Ha Hoang & Manh Dung Tran, 2017. "The Relationship Between Accounting Information in the Financial Statements and the Stock Returns of Listed Firms in Vietnam Stock Exchange," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(10), pages 1-10, October.
    • Handle: RePEc:ibn:ijefaa:v:9:y:2017:i:10:p:1-10
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    References listed on IDEAS

    as
    1. Lipe, Robert C. & Bryant, Lisa & Widener, Sally K., 1998. "Do nonlinearity, firm-specific coefficients, and losses represent distinct factors in the relation between stock returns and accounting earnings?," Journal of Accounting and Economics, Elsevier, vol. 25(2), pages 195-214, May.
    2. Basu, Sanjoy, 1983. "The relationship between earnings' yield, market value and return for NYSE common stocks : Further evidence," Journal of Financial Economics, Elsevier, vol. 12(1), pages 129-156, June.
    3. Ball, R & Brown, P, 1968. "Empirical Evaluation Of Accounting Income Numbers," Journal of Accounting Research, Wiley Blackwell, vol. 6(2), pages 159-178.
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    More about this item

    Keywords

    accounting information; stock returns; Vietnam stock exchange;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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