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The Effect of Macroeconomic Factors on Investor Purchase Decision: The Case Study of HOSE

  • Tran Anh Tung
  • Pham Van Kien
  • Ho Thanh Phong
Conference paper
Part of the Studies in Computational Intelligence book series (SCI, volume 760)

Abstract

Purpose: The aim of this paper is to examine how macroeconomic factors affect investors purchase decision based on the volatile trading value of VN-index in the Ho Chi Minh Stock exchange.

Methodology: This study applies the quantitative approach as the major method. The quantitative analysis of this research will conduct by using R-software and SPSS with statistical technique including simple time series analysis, stationary testing parameters, model specification, and binary logistic regression analysis. The study uses the secondary data collected online from the period of 2008 to 2015. Specifically, this paper uses a total of 84 data points which are plenty for the effective regression analysis. This study attempts to provide the better understanding of investors’ behavior under effect of macroeconomic factors.

Findings: All measurement parameters in this study demonstrate as stationary factors and macroeconomic factors show the significant effects on investor purchase decision with regard to Inflation rate, Crude oil price, and Exchange rate. As a result, this research indicates the result of binary regression model related to the odd ratio equation and the level of accurate prediction of the model.

Value: There are various studies carried out to examine the macroeconomic effects on investor purchase decision, but very few of them observed the said effects with the empirical approach. For this reason, this study applies the new method of binary logistic regression in order to calculate the proportion of purchase decision.

Keywords

Investor purchase decision Macroeconomic effect Stock exchange market HOSE Vietnam 

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Copyright information

© Springer International Publishing AG 2018

Authors and Affiliations

  • Tran Anh Tung
    • 1
  • Pham Van Kien
    • 2
  • Ho Thanh Phong
    • 3
  1. 1.Department of BusinessSaigon Institute of TechnologyHo Chi Minh CityVietnam
  2. 2.International Economic FacultyBanking University HCM CityHo Chi Minh CityVietnam
  3. 3.Industrial and System Engineering DepartmentInternational University - VNUHCMHo Chi Minh CityVietnam

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