Control of Emerging-Market Target, Abnormal Stock Return: Evidence in Vietnam

Paper: arXiv 2302.07117

Authors: Quyen Van, Vy Tran

Abstract

Joining with the upward trend of Global Foreign direct investment and FDI in emerging economies and emerging Asian economies, FDI to Vietnam, especially M&As have increased significantly in both numbers and value of deals from 1995 to 2015…

Complexity vs Empirical Score

• Math Complexity: 3.0/10
• Empirical Rigor: 5.5/10
• Quadrant: Street Traders — practical and empirical, lighter on theory

Why this score: The paper uses standard empirical event study and regression methodology to analyze post-M&A target control in an emerging market context. While structurally typical for empirical corporate finance, the mathematical complexity is low, relying primarily on well-established econometric models rather than novel theoretical derivations.

Research Flowchart

  flowchart TD
    A[Research Goal: Impact of Cross-Border M&A Target Control on Stock Returns in Vietnam] --> B[Data Inputs: M&A Deals 1995-2015 & Vietnamese Stock Market Data]
    B --> C[Methodology: Event Study & Cumulative Abnormal Return CAR Calculation]
    C --> D[Regression Analysis: Control Level vs. Abnormal Stock Returns]
    D --> E[Key Finding: Majority Control Acquisitions Yield Higher Positive Abnormal Returns]