Abstract

Macroeconomic factors exert a significant influence on investment decisions, as they shape stock prices in accordance with a country's economic policies and conditions. In continuation of this discourse, the current investigation seeks to assess the effects of various internal and external macroeconomic factors on stock prices within Vietnam's textile and garment industry. Internal factors encompass Vietnam's exchange rate and bond yield rate, while external factors encompass US inflation, exchange rate, and bond yield rate. Spanning from 2017 to 2023, the study employs the Quantile Autoregressive Distributed Lag Model (QARDL) for empirical estimation. Results indicate that the aforementioned internal factors exert a negative impact on stock prices, whereas external factors exert a positive impact. The significance of these estimations varies across different quantiles. Based on these findings, recommendations are provided to policymakers and government entities to devise effective policies for managing internal and external macroeconomic factors efficiently, thereby harnessing their contributions to the development of the textile industry.