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

Son Tung Ha (), Thi Hong Hanh Pham () and Thi Nguyet AnhNguyen ()
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Son Tung Ha: National Economics University, Vietnam, Postal: 237 Giai Phong Road, Hai, Ba Trung Dist, Hanoi, Vietnam.
Thi Hong Hanh Pham: University of Nantes, France, Postal: Chemin de la Censive du Tertre, BP 52231, 44322, Nantes Cedex 3, France.
Thi Nguyet AnhNguyen: National Economics University, Vietnam, Postal: 237 Giai Phong Road, Hai, Ba Trung Dist, Hanoi, Vietnam.

Journal of Economic Integration, 2021, vol. 36, issue 3, 462-490

Abstract: 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.

Keywords: Financial event study; Abnormal returns; Comprehensive and Progressive Agreement for Trans-Pacific Partnership; Vietnamese stock exchanges (search for similar items in EconPapers)
JEL-codes: F13 F14 G14 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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