Corporate Governance and Financial Stability: The Case of Commercial Banks in Vietnam

Nguyen, Thi Nhu Quynh; Nguyen, Duc Trung; Le, Hoang Anh; Le, Dinh Luan

doi:10.3390/jrfm15110514

Cited by 7 publications

(4 citation statements)

References 69 publications

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“…In hypothesis testing it can be concluded that the hypothesis is accepted where there is a significant positive influence of inflation on ROA. The results of this test are in line with research results from Batsinda & Shukla (2019) and Nguyen (2019) which state that inflation is a macroeconomic variable that has a positive impact on bank performance. With inflation, prices of goods and services will increase, and bank interest rates will also increase.…”

Section: Inflation Has a Significant Effect On Roasupporting

confidence: 86%

“…In hypothesis testing it can be concluded that the hypothesis is accepted where there is a significant positive influence of Economic Growth on ROA. The test results are in line with the findings from (Boussaada et al, 2023;Gupta & Mahakud, 2020;Nguyen, 2019). High GDP growth can create a good economic climate, increase market demand, and encourage consumption and corporate investment.…”

Section: Economic Growth Has a Significant Effect On Roasupporting

confidence: 82%

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Factors that Influence Banking Performance in Indonesia

Eston,

Jatmiko,

Lestari

et al. 2023

JOSR

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This research aims to examine the influence of ESG Score, NPL, Bank Size, Bank Capital, Liquidity Risk, Bank Liquidity, revenue growth, Bank Leverage, Economic Growth, Inflation, Diversification, Labor Productivity, and ESG Score Moderating on Bank performance, which is shown with the achievement of Return on Assets. The research sample used in this research is banks listed on the Indonesia Stock Exchange for the period 2018 to 2022. Data was taken from time series data which contains data from 2018 to 2022 for the independent variable and bank performance as the dependent variable. The research methodology used is Ordinary Least Squares using Eviews 12 software. The findings and contributions in this research are that ESG Score, Non-Performing Loans, Bank Leverage, Economic Growth, and Inflation influence bank performance. Meanwhile, Bank Size, Bank Capital, Liquidity Risk, Bank Liquidity, and revenue growth do not have a significant effect on changes in bank performance. Bank Leverage, Economic Growth, and Inflation have a positive and significant effect on changes in bank performance, while ESG Score and Non-Performing Loans have a negative and significant effect on changes in bank performance. Banks can take advantage of Bank Leverage, Economic Growth, and Inflation opportunities to improve their performance so that investors are interested in buying bank shares. Low and controlled Non-Performing Loans will increase banking profits, thereby improving the bank's performance. It is hoped that the results of this research can provide input for banks and investors to consider ESG Score, Non-Performing Loans, Bank Leverage, Economic Growth, and Inflation in managing their business and in making investment decisions.

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Section: Inflation Has a Significant Effect On Roasupporting

confidence: 86%

Section: Economic Growth Has a Significant Effect On Roasupporting

confidence: 82%

Factors that Influence Banking Performance in Indonesia

Eston,

Jatmiko,

Lestari

et al. 2023

JOSR

View full text Add to dashboard Cite

show abstract

“…Few empirical studies on commercial banks have found leverage and profitability to have a muddled relationship (Abbas et al, 2019). Profitability is negatively correlated with the total debt ratio and the short-term debt ratio, but positively correlated with the long-term debt ratio (Nguyen, 2023), It was determined that there exists an inverse relationship between profitability and capital ratio in the financial industry (Hasbiah, 2022). Gropp and Heider (2010) observed that book leverage and market leverage have a negative correlation with profitability(Lapavitsas & Mendieta-Muñoz, 2019).…”

Section: Literature Review 21 Financial Gainsmentioning

confidence: 99%

Healthcare Industries' Capital Structure Determinants: Evident Listed Companies on the Indonesian Stock Exchang

Baroto,

Manurung,

Buhdadi

et al. 2024

jefms

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The purpose of this paper is to examine the capital structure and its determinants within the Health Industry in Indonesia. Utilizing a panel data model, this study analyzes the financial data of Healthcare Companies listed on the Indonesia Stock Exchange, covering the period from 2017 to 2023, with data processing conducted using the Evieus Software version 13 application. The findings confirm the dominant role of firm-specific factors, indicating that Company Growth, Profitability, Asset Tangibility, and Revenue Volatility significantly affect Book Leverage (BL), while Company Size has a notable effect of 17%. This research provides a novel contribution by focusing on the capital structure analysis specialized in the Pharmaceutical Industry in Indonesia, an area that has not been extensively explored before

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“…The intensity of competition has reached an unprecedented level, requiring companies to rely on innovation, operational optimization, and efficiency improvement to maintain their competitive position (Gomez & Guzman, 2021). Price fluctuations and transitions in economic cycles pose significant risks to corporate financial investment, requiring strong risk management capabilities (Nguyen & Nguyen, 2020). Moreover, the uncertainty of the market economy requires companies to flexibly adjust their financial investment strategies in the context of ever-changing market conditions.…”

Section: Introductionmentioning

confidence: 99%

Research on Financial Investment Strategies of Operating Enterprises in the Context of Market Economy

Wei

2023

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In the context of a globalized and digitalized market economy, the role of corporate financial investment has become increasingly crucial. The primary objective of this study is to understand the impact of the market economy on corporate financial investment, reveal its challenges, and propose optimization strategies. We first provide a brief introduction to the concept and fundamental theory of corporate financial investment. Then, using qualitative analysis methods, we explore the impact of the market economy on corporate financial investment. We find that under the backdrop of a market economy, corporate financial investment confronts numerous challenges, such as deficiencies and biases in formulating and implementing investment strategies, challenges of high-risk investment decisions, shortage of financial market knowledge and analytical skills, as well as issues related to adapting to emerging financial technologies. However, by developing optimization strategies like bridging the gap in investment strategy, tackling high-risk investment challenges, enhancing financial market knowledge and analytical abilities, and leveraging financial technology, enterprises can better cope with these challenges and optimize their financial investments. The results of our study offer practical strategies for enterprises to conduct financial investment in a market economy context.

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Corporate Governance and Financial Stability: The Case of Commercial Banks in Vietnam

Cited by 7 publications

References 69 publications

Factors that Influence Banking Performance in Indonesia

Factors that Influence Banking Performance in Indonesia

Healthcare Industries' Capital Structure Determinants: Evident Listed Companies on the Indonesian Stock Exchang

Research on Financial Investment Strategies of Operating Enterprises in the Context of Market Economy

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