THE IMPACT OF INTEREST RATE POLICY ON THE STOCK MARKET AT THE AGGREGATE AND INDUSTRIAL LEVEL: EVIDENCE FROM VIETNAM
The paper investigates the effect of interest rate announcements on stock returns and trading volume from two view-points: aggregate level and industrial level. We apply two models and two test methods in both the short and the long event window to examine the investors’ reactions to interest rate announcements of the State Bank of Vietnam. The results show that the market index rarely responds to