Thesis Public Defense | VNP25 Nguyễn Thị Thùy Trang

Corporate bond market boom and its implication: Empirical evidence real estate firm Vietnamese

Student: Nguyễn Thị Thùy Trang, VNP 25

Supervisor: Dr. Vũ Việt Quảng

Abstract:

This study tries to examine the direct impact of “corporate bond market boom”(bond boom) on firm performance of sixty listed real estate company on both HOSE and HNX in the 2015-2019 period. Bond issuance is an effective capital mobilization channel in the context of tightened credit by the State Bank in the real estate sector since 2018. However, the massive and uncontrolled bond issuance in recent years can bring negative effects on firm performance of real estate companies in particular and the whole economy in general. Economic experts are also concerned that, if this situation lasts too long, the consequences for the following years will be very serious. However, whether the “corporatebond market boom” actually affects the real estate firms performance will be clarified in this research paper. Several descriptive statistic results depict that the relationship of massive bond issuance and firm performance (measured by ROE, ROA) is negative, but with TobinQ is not statistically significant. Differences in differences model with fixed effect technique is used to estimatethis relationship. Similar to the findings of previous empirical studies, the regression results of this researchillustrate the direct pessimistic impact of “corporatebond market boom” on firm performance over the post-2018 period.

Keywords: “corporate bond market boom” , firm performance, differences in differences.