Investors' Responses under Financial Crisis: A Study of Investment Psychology Based on the Evidence of Hochiminh Stock Exchange

[[abstract]]This study applied time-series analysis, with emphasis on the influence of the 2008 financialcrisis on Vietnam’s stock market between 2004 and 2010. We investigated monthly Granger-causality relationship between Vietnam index and trading volumes, which showed that localinvestors were more yielding to the influence of psychological biases and stock return whileforeign investors were more experienced and knowledgeable to the effect of psychological slantand speculative investment. Additionally, impulse response analysis was used to examine theresponses of investors and confirmed the hypotheses of sounding responses and invert syndrome,occurring in a transforming economy like Vietnam. Finally, We found that trading volumes hadco-integrating relationship among some selected macroeconomic variables, and internationalindicators (world gold price and crude oil price). The results showed that national andinternational economic signals had influence on investors’ responses, which suggested that less-sophisticated investors were more heavily influenced by stock cras