001048567 – The influence of brands perception on bank stock investment in Vietnam market (full) final

TABLE OF CONTENTS LIST OF TABLES AND FIGURES Figure 3.1 Conceptual Model 14 Table 3,1 Hypothesis 16 Table 4.1 CFA result 21 Table 4.2 Discriminant validity and Correlation Matrix .21 Table 4.3 Goodness-of-fit (CFA) 21 Table 4.4 Hypotheses testing .23 ABSTRACT Researchers in behavioral finance have become particularly interested in the connection between the collective views of investors regarding firms and their equity purchasing behaviors This study aimed to provide a systematic review of how the subjective and affective assessments of businesses' brands and products by investors, in particular, can impact shareholders' the tendency to view these businesses as investment targets Through applying psychological market behaviour models, the researcher hypothesizes the results and checks the conclusions with data obtained from 434 investors The findings demonstrate that the personal importance that an investor assigns to the commodity domain of a given company limits the attention that the investor provides to alternate investment goals when buying in the stock of that business A comparable impact is the investor's affective appraisal of the commodity name of the firm In addition, the findings suggest that the affective appraisal of a corporate brand by a shareholder enhances his confidence regarding the business's stock's financial rewards Eventually, the findings indicate that, contrast to what may be predicted, the identification of a shareholder with the brand of the firm does not minimize the attention it provides to alternative investment objectives, nor is branding familiarity related to overconfidence in the business's stock's investment0rewards CHAPTER INTRODUCTION 1.1 Background Commercial banks were formed, existed and developed in association with the development of the commodity economy The development of the commercial banking system has had a huge and important impact on the development of the commodity economy, on the contrary, the commodity economy strongly developed to its high stage – market economy - commercial banks are also increasingly improving and becoming indispensable financial institutions For Vietnam, the concept of commercial banks in the Law on Credit Institutions No 47/2010 / QH 12, passed by the National Assembly on June 16, 2010, states the following: “Commercial banks are all types of credit institutions can be carried out Banking and other related activities for profit” This law also defines: “Banking is a business, regular supply of one or more of the following operations: deposit receipt, grant credit, provide payment services via accounts” Thus, through the above definitions, we can generalize the concept of money Commercial banks are as follows: “A commercial bank is a financial institution The intermediary has the ability to perform whole banking and financial services because of the item spend profit” Commercial banks' operations with the aim of purely for profit Commercial banks are the strongest type of activity and play a leading role in monetary trading today, it holds an important position in the economy Thanks to commercial banks, the idle money that is scattered in the society will be mobilized to gather, and at the same time use that capital to provide credit to entities in the economy for socio-economic development When the commodity economy develops to the highest level, which is a market economy, commercial banks are increasingly perfecting and becoming an indispensable financial institution to operate the economy Commercial banks are the place that provides capital to the economy, is an important tool to promote the development of production forces: Monetary trading with the function of credit intermediaries, commercial banks overcoming the shortcomings of the financial market , unleash idle capital in all organizations, individuals, all economic sectors to form a loan fund and use them to meet the capital needs of the economy As an effective capital distribution channel, commercial banks create conditions for businesses to take advantage of investment opportunities, expand production and business, improve technological processes, thereby improving labor productivity to can stand firm in the fierce competition of the market With the ability to provide capital, commercial banks have become one of the starting points for the economic development of a national bait Commercial banks are the bridge between businesses and the market: To be able to bring products and services to the output market and seek profits, businesses need capital (important inputs, background of all activities) to carry out production When equity is not enough to work, businesses must look to other sources of capital Commercial banks will help businesses solve difficulties with credit capital Thus, commercial banks are the bridge to bring businesses to the market, helping businesses find input capital, lubricate production and business activities and make payments to create finished products for the market Commercial banks help businesses and markets closer together in both space and time Commercial banks are tools for the state to regulate the macro economy: Commercial banks are directly affected by monetary policy tools (open market, compulsory reserves, interest rates) on the other hand, indirectly participate in regulating the macro economy through the relationship with economic organizations, individuals in financial and credit activities Through operations of commercial banks with other entities in the economy, all information related to monetary policy planning will be returned to the central bank, helping the central bank to be able to formulate macroeconomic policies, appropriate in each period to ensure promoting economic growth and stable development Commercial banks are the bridge connecting the national finance with the international finance: Today, the independent nation is developing diverse and complex international relations in many fields: economics, politics, diplomacy, culture, science and technology, in which economic relations are most focused Competitive pressure forces each country to open the door of integration to have strong potential The system of commercial banks with operations such as international payment, foreign exchange trading, investment trust, will help the economy of a country integrate with the rest of the world The domestic commercial banking system has regulated domestic finance in line with the movement of the international finance, bringing the domestic finance to catch up with the international finance Currently, until 2019 there are 49 banks in Vietnam In which banks with 100% state capital, 31 joint stock commercial banks, banks with 100% foreign capital, policy banks, cooperative bank and joint venture banks There are main operating models of commercial banks: specialized banks, general business banks, multi-functional banks - Specialized banks: are banks that only specialize in a certain field such as industrial banking, rural banking, urban banking - General business banks: are banks that can perform many types of traditional operations simultaneously and in many fields In essence, the bank performs a general operation of many specialized banks - Multi-functional bank: is a bank that not only performs general banking operations but also performs other business operations outside the banking sector such as insurance, securities There are two types of multi-purpose banks First, direct multipurpose banking According to this model, commercial banks in addition to the banking business also directly deal in securities or insurance without opening securities companies or affiliated insurance companies Second, it is the indirect multipurpose banking model According to this model, commercial banks other than banking operations are not allowed to directly deal in securities or insurance, but open a securities company or an affiliated insurance company to operate Along with the strong development of the stock market, the insurance market, traditional banking and modern banking operations with securities and insurance operations increasingly close together, Multi-purpose banking is becoming more and more popular in countries In Vietnam, commercial banks operate under the model of indirect multipurpose banking Economics psychology and behavioral finances scholars have increasingly been interested in how the individual expectations of consumers about firms can affect their choices to invest in the stock of companies (banks) In particularly, the links between the subjective assessments of enterprise' products/service and brands by individuals and their stock investments decisions have drawn growing interest For example, Frieder, Subrahmanyam [2005] proposed that enterprises with powerful product/service brands are simply drawn to individual investor Nevertheless, while these current pieces of literature indicate, at the base level, that product/service or brand assessments could affect the stocks investment of individual investor, the actual research does not include comprehensive theoretical analyses or systemic psychometric data of that effect Evidently, what the current thesis has been notably quiet on is the follow up question: How accurately can the arbitrary assessments of companies' goods and trademarks by consumers appear to impact their opinions about such companies as equity investment goals by shaping assumptions regarding the financial return of the stock of the firms or otherwise Researchers in behavioral finances have become particularly interested in the connection between the collective expectations of individual investor about firms and their equity buying decision This essay attempts to have a comprehensive analysis of how the subjective and affective appraisal by investors of the goods and brands of companies/banks, in particular, will impact the tendency of investor to view these companies/banks as investments goals Therefore, the research target analyzes the customer decision to invest in a particular bank stocks with the influences of these brands perception in Vietnam market 1.2 Research purposes The key aim of this study is to perform a systematic and detailed review of individual 'subjective appraisal of the brands of businesses (in specific, the brands of bank) on their plan to select the stocks of these banks for investment in order to fill the gap in recent research Through technically studying the effect and evaluating the hypotheses with collective evidence, the thesis serves these objectives In specific, the viewpoint of this analysis suggests that in this thesis certain key problems need to be addressed as follows: - (1) The combination of both marketing theory and the financial behavior theory - (2) The influence of the factors (familiarity and affective evaluation related to a brand, optimism and confidence related to potential financial returns of a bank’s stock) on the consideration for alternative investing goals - (3) The influence of familiarity and affective evaluation related to a brand on optimism and confidence related to potential financial returns of a bank’s 1.2 Scoop of the study This report includes individual investors in Vietnam's capital markets who are currently invested in bank shares of three Vietnamese banks Samples and data from individual investors were obtained over the period from December 2019 to March 2020 The research period is considered as suitable for research purpose as the from March 2020, the Vietnam stock market witnessed a huge fluctuation because of Covid 19 With the suitable research period, the paper can eliminate the influence of other factors such as investor phycology, disease influence which are not considered in the research 1.3 Research methods and Sample A questionnaire was developed in Vietnamese and the surveys were then sent to online respondents during the period from December 2019 to March 2020 The goal of the research is to collect information through online channels such as Facebok, mail, and the other The questionnaire also established several demographic points in addition to the issue of calculating the variable to gather information on genders, ages, professions Utilizing SPSS-Statistics-18.0, AMOS - analyze software for Structural-equationmodels, the acquired data was then analyzed respondents' answers obtained by various types of survey questions to validate the hypothesis 1.4 Research structure Section One-Chapter Introduction includes introductions on Vietnam's banking industry, research history, research objectives and framework of research Such chapters, literature analysis, methods, outcomes and discourse, respectively, accompany this chapter The 2nd chapter-the second chapter of the literature review discusses several observations from previous research, describes structures, and establishes the theories that will be evaluated in the analysis The third part, Chapter Methodology includes analytical introductions It provides sample and data collection material, creation of questionnaires, review of data The 4th chapter-the findings of the data analysis, predictions and test results are discussed Chapter introduces key research findings and some commentary In this section, some restrictions and more future study are also listed CHAPTER LITERATURE REVIEW 2.1 Consideration for Alternatives Study of financial sector have assumed that certain stocks or other investment prospects all over the world, along with all significant details regarding them, are immediately available to investors and usable (Warneryd, 2001) With any of these assumptions, ordinary analysis really hasn't paid much attention to the issue of how investors actually make decisions of which specific stock as investment targets and comparing them with the others Nevertheless, more recent scientific research on behavioral finance have gradually adopted the idea of treating stocks as 'products' on the market, analogous to consumer goods (Barber, Odean, 2008) This has prompted scholars to become more concerned about how individual investors actually learn, evaluate, compare, and establish tendencies towards particular stocks In the meantime, it is really the trend that scholars have noticed stock markets, particularly with the growth of a global online market, crowded with hundreds of substitute banks, shares and stocks that leads private investors to face amazing difficulties in the dealing of data in selecting the right stocks to make investing decisions In any event, the present researchers have been quiet on the mechanism about how a particular bank (or any companies) can really catch the concern of an individual investor, the level of (mindful) thinking the investor gives to a particular stock rather than other alternative ones, till making a decision to purchase (Goldstein, Sharpe, 2008) This is largely related to the absence of individual scale, mental philosophy and the lack of knowledge that may appeal to individual financial expert psychology as opposed to overall bank (company) knowledge, such as investment marketing or attentionattracting details from banks (firms) Another is the connection between the thinking point of buying decisions and the willingness of investors who want to invest in a bank (companies) with relevant bank (companies) experience Within that article, the researchers develop the study with a market theory-informed perspective and approach on financial behavior, followed by the study of observational, person-level evidence 10 study, 434 correct responses are acceptable and available The final sample size is deemed sufficient to interpret the results 3.3 Measurement of Variables Questionaires Consideration stocks of Strongly Agree alternative I made specific decision to invest in current stock I have no consideration for other alternative stocks at all When you buy current stock, you also think about purchasing other banks’ stocks? The current stock is the only one stock that I considered Optimism In my opinion, I believe that the development of this bank earnings will be good in the long-run In my opinion, I believe that the development of bank earnings will be good in the near-term In my opinion, I believe that the stockprice of the bank will rise in the longrun In my opinion, I believe that the stockprice of the bank will rise in the nearterms Confidence The stock-price improvement after your purchase showed up to you as astounding The profit improvement after your buy showed up to you as astounding Affective evaluation The bank service is good 21 Agree Neutra l Disagree Strongly Disagree The bank service is pleasant The bank service is attractive I like the bank service of the bank which I am investing I have positive attitude toward the bank service The bank I am investing have better service than other banks Familiarity I know well about the bank I am investing I know well about the service I am investing 3.4 Data Analysis 3.4.1 Descriptive Statistical Analysis The findings were then analyzed on the basis of the responses received from two forms of survey queries, column-based and nationwide web-based, using SPSS Statistics 18.0, AMOS These analytical methods help to transform the signal into useful numbers for future analyses, as well as not to verify whether the results in the sense developed in this analysis is accurate and real and test the correlation between variables As first step of data processing, the study carries out other extensive statistical analysis in order to understand more about the respondents In terms of the characteristics, the variables evaluated, including mean, standard deviation or interaction with this succinct analysis, will be accurately defined 3.4.2 Factors Analysis Analysis of the exploratory element (EFA) is used to define the fundamental function of all variables The orthogonal rotation approach has also been chosen for dimension reduction Factor loadings reflect the relationship between variables and factors The larger the loading factor, the easier the method of factor analysis is, but Hair (2014) proposed a value of 0.5 as a cut-off for functional relevance 22 CFA Confirmatory factor analysis is a confirmatory evaluation of the principle of measurement In CFA, both variables are based on theories instead of statistical results Investigators should easily grasp the number of structures, variables and structures to which variable belongs CFA defines the relationship of the theories between variables and latent factors For the parameters, it is generally agreed that the loading factor is greater than 0.6; the own value is greater than 1; the overall deviation should be more than 60 per cent; the item-to - total correlation cut-off value is 0.5; and Cronbach's Alpha should be at least 0.7 3.4.3 Structural Equation Model (SEM) The Structural Equation Model (SEM) is characterized as a multi-purpose technique for accessing interrelated dependency relationships SEM is highly advocated for models with at least one factor acting as both a dependent and an independent factor in the relationship of variance Multiple health indices have been used to measure health Structural-Equation-Modeling is a technique used to evaluate the research model The Partial least squares SEM (PLS-SEM) model was defined as an extension of the initial SEM system used to verify the frameworks Partial least squares (PLS-) is an expansion of the initial SEM methodology to evaluate the structures suggested PLS-is used as a causal modeling tool which aims to exaggerate the stated variance of the latent based constructs Partial least squares Structural-Equation-Modeling gets loadings of the indicator variables for the exogenous constructs dependent on their estimation of the endogenous constructs, so there is no mutual variation between the indicator variables on the same framework Thus the Partial least squares Structural-Equation-Modeling loadings are their addition to direction of coefficients Partial least squares Structural-Equation-Modeling is a beneficial strategy for scholars who work using SEM particularly in the marketing and management IS scenario, thanks to the benefits it provides Partial least squares Structural-Equation-Modeling is a more "regression-based" which reduces the endogenous construct's residual variances 23 CHAPTER ESTIMATION RESULTS 4.1 Demographic statistics The study offers information on the descriptive examination of major topics, including ethnicity, age, profession, wages, and gender and education Much of the 24 samples (351samples, 81.12 percent) were under 35 years old, 69 samples (15.64 percent) were 36-45 years old, and just 14 samples (3.24 percent) were different In terms of occupation, Stok investing specialist made up 52.9% (231 samples), company employees account for 138 samples (32.02%), self-business are 36 samples (8.52%) and others consist of 31 samples (6.43%) Most of samples had the monthly income under USD500 (234 samples, 54.14%), followed by USD 500/1000 group with 120 samples (27.87%), 80 samples (17.99%) have monthly income over USD1000 In relation to gender, with 196 samples, males accounted for 45.38 percent while females accounted for 54.62 percent with 238 samples With a College degree account for a number of 72.34 percent/313 samples, accompanied by another education group with 13.35 percent/57 samples, then the master group with 12.69 percent/57 samples and the Doctorate and Doctorate group with 1.62 percent/8 samples 4.2 Confirmatory factor analysis Ideas on CFA outcomes are presented in Table 4.1 The standard stacking factor should be over 05 (Bagozzi, 2011) As can be shown, all the remaining items have a stacking factor over the indicated 0.6 estimate Bagozzi (2011) indicated that Cronbach's alpha should be over 0.7 Also, Cronbach's alpha was used to survey unshakeable efficiency The findings showed that Cronbach's alpha was known by both inventions Checking of scale efficiency with the Alpha coefficient of Cronbach Throughout the form of the inquiry, this strategy helps specialists to evacuation unsatisfying variables and defining moment refuse factors in determining the reliability of the scale by the Alpha coefficient of the Cronbach The Alpha coefficient of Cronbach is used to measure the scale's inside accuracy The greater the Alpha coefficient, the greater the value of the variables, and the greater the relation degree of the prediction variables As Cronbach's Alpha x a varies throughout the set, a scale has strong reliability If Cronbach alpha >0.6 is an appropriate reliability factor Cronbach's Alpha, also does not say which provided sufficient have to be excluded or which provided sufficient need to be kept, so we take into consideration the indicator correlation coefficient The "garbage" variables are known to be factors with cumulative correlation coefficients smaller than 0.3 and will be excluded from the range This is 25 ... decisions of individuals investor to invest in stocks depend on the confidence in invest return Consequently, obviously, the more confidence of investor regarding the return on the investing of a bank. .. review of individual 'subjective appraisal of the brands of businesses (in specific, the brands of bank) on their plan to select the stocks of these banks for investment in order to fill the gap in. .. development of bank earnings will be good in the near-term In my opinion, I believe that the stockprice of the bank will rise in the longrun In my opinion, I believe that the stockprice of the bank will