Monetary Policy Uncertainty And Stock Returns

Abstract

A study has been conducted to examine the effects of Monetary Policy Uncertainty (MPU) on the stock prices of real estate and banking firms listed on the Ho Chi Minh City Stock Exchange (HOSE). The study aims to evaluate the influence of Monetary Policy Uncertainty (MPU) and other factors on the stock prices of real estate and banking companies. Subsequently, you may discern the predominant aspects that have the greatest influence in determining the optimal investment in stocks for maximizing earnings. The information was gathered from the financial reports of seventeen real estate businesses and banks that were registered on the Ho Chi Minh Stock Exchange (HOSE) for the period of time spanning from 2014 to 2023 by the organization. The data underwent processing using the Panel Least Squares methodology. The findings derived from examining observed samples indicate that stock prices in the Banking sector group and the Real Estate group are influenced by US monetary policy uncertainty (US MPU), Vietnam interest rate volatility (VOL), and the Total debt to assets ratio (DAR), Debt/Equity, along with MPU and VOL, has an influence on stock prices. This significant discovery presents compelling proof that the stock prices of Vietnam's Banking and Real Estate sectors are influenced by the Monetary Policy Uncertainty (MPU) of the United States. It further investigates if this impact differs across these two industrial groupings. Moreover, this factor has great significance while selecting stocks to attain earnings.