Factors Affecting the Business Performance of the Companies: Evidence from Vietnam Listed Banks
DOI:
https://doi.org/10.24203/ajbm.v10i3.7016Keywords:
Business Performance (BP), Enterprises (ES), Small and Medium Sized Enterprises (SMES); Vietnam Listed Banks (VLB);Abstract
The study was meant to investigate factors affecting the business performance at Vietnam listed joint stock commercial banks. The study aimed at finding out how clientele, source of funds, leadership and promotional strategies, government regulations, macroeconomics factors influenced the business performance of Vietnam listed commercial banks. The study adapted a descriptive research design as a major method of research where questionnaires were used to collect data from a sample of Vietnam listed joint stock commercial banks. Data collection was both primary and secondary data. Primary data was collected using questionnaires distributed to the banks’ employees. They were designed to obtain broad range of answers from respondents which were used to answer the research questions. They comprised of close ended questions and secondary data was gathered from previous studies and annual reports of banks. Descriptive statistics was used to analyze data and the statistical package for social sciences (SPSS 21.0) and advanced Excel were used. Reports were tabulated using frequency tables for clarity. The results established the relationship between business performance as a dependent variable and the independent variables including clientele, and source of funds, promotional strategies and leadership. The study findings showed a great influence of funds and clientele on the performance of commercial banks, followed by promotional strategies. Leadership was found to have less influence on performance of the bank. The study suggests to the financial sector players to maintain a sufficient clientele base and embrace healthy competition. The findings should draw the attention of scholars, the government and the private sector to help in ensuring economic stability of this country as banking is a major sector of the economy.
References
Ari, K. & Fredrik, S. (2004), “The Internationalization of Vietnamese SMEs, Stockholm School of Economics”, Asian Economic Papers, Vol.4, No.1, 12-39.
Baard, V.C. & Van den Berg, A. (2004), “Interactive Information Consulting System for South African Small Businesses”, South African Journal of Information Management, Vol.6, No.2, 39-50.
Fausto, H. T., Jose, A., Pagan and Julia, P. (2013), 'Star up capital. Microenterprises and technical eficiency in Mexico', Review of development Economics, 9, 434-447.
Henrik Hansen, John Rand & Finn, T. (2002) “SME Growth and Survival in Vietnam: Did Direct Government Support Matter?”, accessed http://www.vnep.org.vn
Jabri, A. and Brahim, M. (2015). Institutional determinants of foreign direct investment in MENA region: Panel co- integration analysis. Journal of Applied Business Research (JABR), 31(5),2001-2012. https://doi.org/10.19030/jabr.v31i5.9417
Jabri, A., Guesmi, K., and Abid, I. (2013). Determinants of foreign direct investment in MENA region: Panel co-integration analysis. The Journal of Applied Business Research, 29(4), 1103-1109. https://doi.org/10.19030/jabr.v29i4.7976
Jensen, N. M. (2003). Democratic governance and multinational corporations: Political regimes and inflows of foreign direct investment. International Organization, 57(3), 587-616. https://doi.org/10.1017/S0020818303573040
Jouili, T. (2018). Determinants of foreign investment in maritime nations. International Journal of Advanced and Applied Sciences, 5(5), 43-47. https://doi.org/10.21833/ijaas.2018.05.006
K. Salman & D. Yazdanfar (2012), “Profitability in Swedish SME firms: A quantile regression approach”, International Business Research, vol. 5, no. 8, 94-106;
Kumar, N. (1994). Determinants of export orientation of foreign production by US multinationals: An inter-country analysis. Journal of International Business Studies, 25(1), 141-156. https://doi.org/10.1057/palgrave.jibs.8490196
Kwiatkowski, D., Phillips, P.C., Schmidt, P., and Shin, Y. (1992). Testing the null hypothesis of stationary against the alternative of a unit root: How sure are we that economic time series have a unit root? Journal of Econometrics, 54(1-3), 159-178. https://doi.org/10.1016/0304-4076(92)90104-Y
Lei, H.S., Chen, Y.S. (2011), The right tree for the right bird: Location choice decision of Taiwanese firms' FDI in China and Vietnam International Business Review, Elsevier, 20 (3), 338-352. https://doi.org/10.1016/j.ibusrev.2010.10.002
Loree, D.W. and Guisinger, S.E. (1995). Policy and non-policy determinants of US equity foreign direct investment. Journal of International Business Studies, 26(2), 281-299. https://doi.org/10.1057/palgrave.jibs.8490174
Louail, B. (2019). Determinants of foreign direct investment in Arab countries during 1970–2016. International Journal of Advanced and Applied Sciences, 6(3), 102-110. https://doi.org/10.21833/ijaas.2019.03.015
Mehari and T. Aemiro (2013), “Firm specific factors that determine insurance companies’ performance in Ethiopia”, European Scientific Journal, vol. 9, no.10, 245-255.
Mina, W. (2007). The location determinants of FDI in the GCC countries. Journal of Multinational Financial Management, 17(4), 336-348. https://doi.org/10.1016/j.mulfin.2007.02.002
Mina, W.M. (2012). The institutional reforms debate and FDI flows to the MENA region: The “best” ensemble. World Development, 40(9), 1798-1809. https://doi.org/10.1016/j.worlddev.2012.04.026
Moosa, I.A. (2009). The determinants of foreign direct investment in MENA countries: An extreme bounds analysis. Applied Economics Letters, 16(15), 1559-1563. https://doi.org/10.1080/13504850701578819
Mssimo, G. and Colombo (2015), 'Start up size- The role of external financing', Economic Letters, 88, 107-121.
Nguyen, H.A. et al (2020), Impact of Working Capital Management on Firm’s Profitability: Empirical Evidence From Vietnam. Journal of Asian Finance, Economics and Business, 7(3), 115-125. https://doi.org/10.13106/jafeb.2020.vol7.no3.115
Nguyen, T. N. L., Nguyen, V.C., (2020). The Determinants of Profitability in Listed Enterprises: A Study from Vietnamese Stock Exchange. Journal of Asian Finance, Economics and Business, 7(1), 47-58. https://doi.org/10.13106/jafeb.2020.vol7.no1.47
Nnadi, M. and Soobaroyen, T. (2015). International financial reporting standards and foreign direct investment: The case of Africa. Advances in Accounting, 31(2), 228-238. https://doi.org/10.1016/j.adiac.2015.09.007
Panco, R., and Korn, H (1999), “Understanding Factors of Organizational Mortality: Considering Alternatives to Firm Failure”, accessed http://www.eaom.org
Parker, S. and Phan, V. Q. and Nguyen, N. A. (2005): Has the US-Vietnam Bilateral Trade Agreement Led to Higher FDI into Vietnam? International Journal of Applied Economics, 2 (2), 199-223.
Pesaran, M.H. (1997). The role of economic theory in modelling the long run. The Economic Journal, 107(440), 178-191. https://doi.org/10.1111/1468-0297.00151
Pesaran, M.H. and Shin, Y. (1998). An autoregressive distributed-lag modelling approach to cointegration analysis. Econometric Society Monographs, 31, 371-413. https://doi.org/10.1017/CCOL521633230.011
Pesaran, M.H., Shin, Y., and Smith, R. P. (1999). Pooled mean group estimation of dynamic heterogeneous panels. Journal of the American Statistical Association, 94(446), 621-634. https://doi.org/10.1080/01621459.1999.10474156
Pesaran, M.H., Shin, Y., and Smith, R.J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289-326. https://doi.org/10.1002/jae.616
Pricope, C.F. (2017). The implications of IFRS adoption on foreign direct investment in poor countries. The Audit Financial Journal, 15(146), 218-218. https://doi.org/10.20869/AUDITF/2017/146/218
Ramasamy (2005), “Firm size, ownership and performance in the Malaysian palm oil industry”, Asian Academy of Management Journal of Accounting and Finance, vol. 1, pp. 81-104;
Rogmans, T. (2013). Location and operation mode decision making in the Middle East: A case study approach. Journal of Strategy and Management, 6(2),190-206. https://doi.org/10.1108/17554251311322440
Stierwald (2009), “Determinants of firm profitability-The effect of productivity and its persistence,” Melbourne Institute of Applied Economic and Social Research, The University of Melbourne;
Tran, T. Q. (2009). Sudden Surge in FDI and Infrastructure Bottlenecks: The Case in Vietnam. ASEAN Economic Bulletin 26(1), 58-76. https://www.muse.jhu.edu/article/266539.
Vijayakumar (2011), “An empirical study of firm structure and profitability relationship: The case Of Indian automobile firms,” International Journal of Research in Commerce and Management, vol. 1, no. 2, 100-108;
Vijayakumar (2011), “The determinant of profitability: An empirical investigation using Indian automobile industry,” International Journal of Research in Commerce and Management, vol. 2, no. 1, 58-64;
Xuan, V. N. (2020), Factors affecting foreign direct investment: Evidence at foreign technology enterprises in Vietnam. International Journal of Advanced and Applied Science, 07(4), 21-28. https://doi.org/10.21833/ijaas.2020.04.004
Xuan, V.N. (2020), Determinants of Investment Capital Size: A Case of Small and Medium Sized Enterprises in Vietnam. Journal of Asian Finance Economics and Business. https://doi.org/10.13106/jafeb.2020.vol7.no6.019
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Asian Journal of Business and Management
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
- Papers must be submitted on the understanding that they have not been published elsewhere (except in the form of an abstract or as part of a published lecture, review, or thesis) and are not currently under consideration by another journal published by any other publisher.
- It is also the authors responsibility to ensure that the articles emanating from a particular source are submitted with the necessary approval.
- The authors warrant that the paper is original and that he/she is the author of the paper, except for material that is clearly identified as to its original source, with permission notices from the copyright owners where required.
- The authors ensure that all the references carefully and they are accurate in the text as well as in the list of references (and vice versa).
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
- The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.