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EFFECTS OF BEHAVIORAL FINANCE ON VIETNAMESE STOCK MARKET
Keywords:
rational expectations, behavioral finance, excessive volatility, trading volume, optimism, pessimismDOI:
https://doi.org/10.17654/0972361723002Abstract
Oprean and Tanasescu [29] concluded that behavioral errors (optimism, pessimism, depression, anxiety, etc.) steadily win the dispute against reasonable behavior and rationality hypothesis failed to explain the excessive volatility of trading volume recorded on Romanian and Brazilian markets. The present paper examines whether the same results can be achieved by using the same methodology on Vietnamese market. Our findings are consistent with those in the original work that the market is dominated by irrational behavior of investors in all analysis periods. Notably, the paper reveals that effects of behavioral finance on Vietnamese market are bigger and more various than those on Romanian and Brazilian ones.
Received: October 13, 2022; Accepted: November 28, 2022; Published: December 17, 2022
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