Implementation of Sustainability Strategies in Operations and Abnormal Stock Returns Under Uncertainty: Evidence from Companies Listed on the Vietnamese Stock Market During the COVID-19 Outbreak

Nguyen Thi Ngoc Hoa, Khuu Thi Phuong Dong (), Nguyen Kim Khanh and Nguyen Minh Canh
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Nguyen Thi Ngoc Hoa: School of Economics, Can Tho University, Can Tho City 900000, Vietnam
Khuu Thi Phuong Dong: School of Economics, Can Tho University, Can Tho City 900000, Vietnam
Nguyen Kim Khanh: School of Economics, Can Tho University, Can Tho City 900000, Vietnam
Nguyen Minh Canh: School of Economics, Can Tho University, Can Tho City 900000, Vietnam

JRFM, 2025, vol. 18, issue 3, 1-21

Abstract: This study examines the effects of implementing sustainable strategies in operations on the abnormal stock returns of companies listed on the Vietnamese stock market under uncertain conditions, using an event study and difference-in-differences analysis. Daily trading data were obtained from 107 companies listed on the Vietnamese stock market from 2 January 2020 to 31 March 2020 (~6313 observations included in the sampling). Of these, 41/107 (38.3%) and 66/107 (61.7%) did and did not implement sustainability strategies in their operations, respectively. The feasible generalized least-squares regression model indicated a positive impact of the implementation of sustainable strategies in operations on abnormal stock returns of the companies during the COVID-19 pandemic ( p < 0.01 in the context of the COVID-19 pandemic). The results underline the implementation of sustainability strategies in the operations of companies as a critical tool to mitigate damage under uncertain conditions, enhance resilience, and achieve long-term competitive advantages.

Keywords: sustainable practices; abnormal return; uncertainty; difference-in-differences analysis; Vietnamese stock market (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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