Factors Influencing Business Efficiency of Steel Firms: Evidence from Vietnam

다국어 초록 (Multilingual Abstract)

This study aims to identify and analyze the impact of internal factors on business efficiency of steel firms in Vietnam. The article uses data collected from the financial statements of 26 steel firms operating in Vietnam between 2012 and 2019. With the application of E-view software in quantitative analysis to build regression models on the table data (panel data), and the study has built a regression model identifying the relationship and impact level of internal factors affecting business efficiency of steel firms in Vietnam. In the study, the dependent variable is business efficiency, determined by the profit after tax on the firm’s assets. The independent variables are firm size, growth rate, capital structure, ratio of long-term assets, receivables management, and solvency. The research results show that the four factors of firm size, growth rate of assets, receivables management, and solvency have a positive impact on business efficiency, while two factors including capital structure and ratio of long-term assets do not affect business efficiency of enterprises. The results of this article are very useful for corporate executives in general and for financial managers in particular, helping managers make the right financial decisions for the company to promote business efficiency of the company.

참고문헌 (Reference)

1 Addae, A. A., "Working Capital Management and Profitability : An empirical Investigation in an Emerging Market" 4 (4): 143-152, 2013

2 Gill, A., "The relationship between working capital management and profitability : Evidence from the United States" 10 (10): 1-9, 2010

3 Bolek, M., "The influence of liquidity on profitability of polish construction sector companies" 8 (8): 38-52, 2012

4 Chen, M., "The impact of insider managerial ownership on corporate performance of Taiwanese tourist hotels" 31 (31): 338-349, 2012

5 Masulis, R. W., "The impact of Capital Structure Change on Firm Value : Some Estimates" 38 (38): 107-126, 1983

6 Tzelepis, D., "The effects of regional capital subsidies on firm performance : An empirical study" 11 (11): 121-129, 2004

7 Abor, J., "The effect of capital structure on profitability : An empirical analysis of listed firms in Ghana" 6 (6): 438-445, 2005

8 Ooi, J., "The determinant of capital structure : Evidence on UK property companies" 17 (17): 464-480, 1999

9 Phong Anh NGUYEN, "The Relationship between Productivity and Firm’s Performance: Evidence from Listed Firms in Vietnam Stock Exchange" 한국유통과학회 6 (6): 131-140, 2019

10 Pouraghajan, A., "The Relationship between Capital Structure and Firm Performance Evaluation Measures : Evidence from the Tehran Stock Exchange" 1 (1): 166-181, 2012

11 Gleason, K. C., "The Interrelationship between Culture, Capital Structure, and Performance : Evidence from European Retailers" 50 (50): 185-191, 2000

12 Majumdar, S. K., "The Impact of Size and Age on Firm-level Performance : Some Evidence from India" 12 (12): 231-241, 1997

13 Ebaid, I. E., "The Impact of Capital Structure Choice on Firm Performance : Empirical Evidence from Egypt" 10 (10): 477-487, 2009

14 Uadiale, O. M., "The Impact of Board Structure on Corporate Financial Performance in Nigeria" 5 (5): 155-162, 2010

15 Thi Ngoc Lan NGUYEN, "The Determinants of Profitability in Listed Enterprises: A Study from Vietnamese Stock Exchange" 한국유통과학회 7 (7): 47-58, 2020

16 Phillips, P. A., "Performance implications of capital structure : Evidence from quoted UK organisations with hotel interests" 24 (24): 31-51, 2004

17 Durand, R., "Leveraging the first mover advantage : Proprietary technologies versus cost leadership" 19 : 909-926, 2001

18 Ahmad, A. H., "Investigation of optimal capital structure in Malaysia : A panel threshold estimation" 30 (30): 108-117, 2013

19 Anh Huu NGUYEN, "Impact of Working Capital Management on Firm’s Profitability: Empirical Evidence from Vietnam" 한국유통과학회 7 (7): 115-125, 2020

20 Saeed, M. M., "Impact of Capital structure on banking performance(A case study of Pakistan)" 4 (4): 393-403, 2013

21 Hall, M., "Firms size and profitability" 49 (49): 319-331, 1967

22 Gomes, J., "Financing investment" 91 : 1263-1285, 2001

23 Nair, P., "Financial liberalization and determinants of investment : A study of Indian manufacturing firms" 5 (5): 121-133, 2011

24 Almajali, A. Y., "Factors Affecting the Financial Performance of Jordanian Insurance Companies Listed at Amman Stock Exchange" 4 (4): 266-285, 2012

25 Napompech, K., "Effects of Working Capital Management on the Profitability of Thai Listed Firms" 3 (3): 227-232, 2012

26 Deloof, M., "Does Working Capital Management Affects Profitability of Belgian Firms?" 30 (30): 573-588, 2003

27 Roden, D., "Corporate capital structure decision : Evidence from leverage buyouts" 24 : 76-78, 1995

28 Tsuji, C., "Corporate Profitability and Capital Structure : The Case of the Machinery Industry Firms of the Tokyo Stock Exchange" 4 (4): 14-21, 2013

29 Khatab, H., "Corporate Governance and Firm Performance: A Case study of Karachi Stock Market" 2 (2): 39-43, 2011

30 Saad, N. M., "Corporate Governance Compliance and the Effects to Capital Structure" 2 (2): 105-114, 2010

31 Cheng, Y. S., "Capital structure and firm value in China : A panel threshold regression analysis" 4 (4): 2500-, 2010

32 San, O. T., "Capital structure and corporate performance of Malaysian construction sector" 1 (1): 28-36, 2011

33 Kester, W. C., "Capital and Ownership Structure : A Comparison of United States and Japanese Manufacturing Corporations" 15 (15): 5-16, 1986

34 Jiraporn, P., "Capital Structure, Staggered Boards, and Firm Value" 64 (64): 49-60, 2008

35 Saeedi, A., "Capital Structure and firm performance : Evidence from Iranian Companies" 70 : 20-29, 2011

36 Zeitun, R., "Capital Structure and Corporate Performance: Evidence from Jordan" 1 (1): 40-61, 2007

37 Wu, Z., "Board monitoring and access to debt financing" 13 : 119-137, 2009

38 Buse, L., "Analiza Economico – financiara" 22 : 282-286, 2010

39 Bokpin, G. A., "An empirical analysis of the determinants of corporate investment decisions : Evidence from emerging market firms" 33 : 134-141, 2009