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Management Science Letters

ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print)
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Volume 10 Issue 3 pp. 523-530 , 2020

Determinants of profitability: evidence from construction companies listed on Vietnam Securities Market Pages 523-530 Right click to download the paper Download PDF

Authors: Thi Nhu Le, Van Anh Mai, Van Cong Nguyen

DOI: 10.5267/j.msl.2019.9.028

Keywords: Profitability, Listed construction companies, Return on assets, Return on equity, Vietnam stock exchange

Abstract: The profitability of businesses is influenced by many different factors such as financial structure, financial leverage, size and age of enterprises, business characteristics, etc. Therefore, the determination of the factors influencing on the trend of the profitability of enterprises is an essential and important basis for managers to provide useful solutions to improve performance measurement. This study was conducted based on data collected from 73 listed construction companies in Vietnam for the period 2008-2015 with 584 observations and using quantitative methods in combination with the FEM regression model through Hausman test with the help of Stata software 14.0. The research results show that: (1) The age of the company (AGE) and debt ratio (TD) negatively affect the profitability (2) Growth rate (GROW) and asset utilization performance (TURN) have positive impacts on profitability (3) Company size (SIZE) has a positive impact on profitability, and (4) The proportion of fixed assets in total assets (TANG) maintains an opposite effect on profitability although the effect is not clear. Based on the research results, the authors have provided a number of specific recommendations and solutions to improve the profitability of the construction companies listed on the Vietnam Stock Exchange.

How to cite this paper
Le, T., Mai, V & Nguyen, V. (2020). Determinants of profitability: evidence from construction companies listed on Vietnam Securities Market.Management Science Letters , 10(3), 523-530.

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Journal: Management Science Letters | Year: 2020 | Volume: 10 | Issue: 3 | Views: 3880 | Reviews: 0

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