Factors Influencing Business Efficiency of Steel Firms: Evidence from Vietnam

• Published in: The Journal of Asian finance, economics, and business Vol. 8; no. 1; pp. 295 - 304
• Main Authors: NGUYEN, Nguyet Minh, TRAN, Kien Trung
• Format: Journal Article
• Language: Korean
• Published: 한국유통과학회 30.01.2021; Korea Distribution Science Association
• Subjects: Business Efficiency; Solvency; Steel Firms; Receivables Management
• ISSN: 2288-4637; 2288-4645

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.