,
Faculty Faculty of Banking and Insurance, Academy of Finance, Vietnam
,
Academy of Finance, Hanoi, Vietnam
,
Faculty of Finance and Banking, Academy of Finance, Hung Yen Campus, Hung Yen, Vietnam
,
Faculty of Banking and Insurance, Academy of Finance, Hanoi, Vietnam
,
Mai Quynh Pham, Lecturer, Faculty of International Finance, Academy of Finance, Vietnam
Faculty of International Finance, Academy of Finance, Hanoi, Vietnam
The fast-paced development of the securities industry of Vietnam led to higher competition among enterprises and the necessity to discover the factors that determine the financial performance of various market segments. There is scarce literature concerning the financial performance of small, unlisted and UpCom securities firms, as previous studies concentrated mainly on listed firms, especially those located on HOSE. The aim of this study is to fill the gap by conducting an empirical study of the determinants of financial performance of Vietnamese securities firms at all market levels. Originality of this study consists of creating an extensive panel dataset of 80 securities firms and 238 observations for 2022-2024 with the inclusion of corporate governance, financial features of the company and macroeconomic factors. Quantitative panel longitudinal research design was utilized, and estimation approaches were performed sequentially, namely Pooled Ordinary Least Squares (OLS), Fixed Effects Model (FEM), Random Effects Model (REM) and Feasible Generalized Least Squares (FGLS). The financial performance of the sample firms was gauged using the following variables: Return on Assets (ROA), Return on Equity (ROE) and Return on Sales (ROS). From the results using FGLS method, it can be noted that firm size has been found to be the single most significant positive determinant of performance (ROA: β=0.0099; ROE: β=0.0140; ROS: β=0.0747, p<0.001), indicating the significance of economies of scale in the securities industry. Board gender positively impacts ROA and ROE, while CEO duality negatively impacts ROS. On the other hand, there is a negative impact of the fixed assets ratio and GDP growth on the financial performance of the firms, while inflation positively impacts ROE and ROS. It can be concluded that organizational size, diversity in governance and resource management have been established as key determinants of securities firm performance.
This is an open access article distributed under the Creative Commons Attribution Non-Commercial License (CC BY-NC) License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
The statements, opinions and data contained in the journal are solely those of the individual authors and contributors and not of the publisher and the editor(s). We stay neutral with regard to jurisdictional claims in published maps and institutional affiliations.
