Impacts of ownership structure on stock price synchronicity of listed companies on Vietnam stock market
Abstract
The volatility of stock prices is influenced by general macro information of the whole market and specific information of the listed companies. When the stock price reflects most of the general market information but little of the business information, the stock price easily synchronizes with the market and creates the stock price synchronicity. The research uses the multivariate regression method to estimate array data set of all listed companies on Vietnam stock market in the period of 2007-2017 . The research findings have shown that stock price volatility in Vietnam is mainly caused by general information of the whole market. In addition, they indicate an inverse relationship between the ownership of major shareholders, the ownership of foreign investors and the stock price volatility, and there exists a positive relationship between state ownership and the stock price synchronicity. The research findings have indicated more clearly the phenomenon of stock price synchronicity in a particular developing country and offered several important implications for corporate executives to limit the synchronicity and enhance the informativeness in the company's stock price.