Value versus growth strategies on Vietnamese market, the evidence from listed companies on Ho Chi Minh Stock Exchange

Abstract

The study, which uses balanced panel data in analysis, is aiming at finding the value premium and explanatory power of value versus growth classification proxies in explaining stock profits in Vietnam by collecting 100 random companies on Ho Chi Minh Stock Exchange during the period of two years from 31/12/2011 to 31/12/2013. From portfolio analysis‟s result, the value premium (the positive difference between value stocks and growth stocks) was not described in Vietnamese market; instead the result supported the outperformance of growth stocks in portfolios formed on cash-flowto-price variable. The remaining variables reveal the statistically insignificant values. From regression analysis‟s result, univatiate regression proved that all explanatory variables have the explanatory power in explaining stock return. Moreover, multivariate regression confirmed the result of portfolio analysis, which again affirmed the importance of CF/P variable in explaining stock returns or in best identifying growth stocks of investment strategies.