Post-merger profitability of securities firms in Vietnam

Abstract

The boom of the Vietnam stock market from 2006 to 2009 led to an increasing number of securities firms. A lack of strict regulation while there were so many operating firms resulted in bad situation of them, especially when the stock bubble bursted in 2010. In response, the State Securities Commission had imposed many policies to restructure the worst securities firms, including mergers and acquisitions. Up to now, there were five successful transactions. Whether merger is a good option for the biggest lossess suffered firms in terms of their profitability or not? This paper aims to evaluate the profitability of those post-merger securities firms.