Reasons for capital increase of securities brokers

Abstract

Introduction: The study uses a linear regression model based on Pooled OLS, FEM, REM, GLS panel data to examine the impact of financial capacity on sustainable growth in order to create more grounds for evaluating the financial capacity of Vietnamese securities companies.Methods: The study excludes newly established or merged companies whose financial data do not ensure comparability and those that do not disclose sufficient information required for the study. The research uses a linear regression model based on panel data to test the impact of financial capacity on sustainable growth, thereby providing a basis for evaluating the financial capacity of Vietnamese securities companies. Results: Results show evidence identifying 8 independent variables explaining 89.2% of the variation in the dependent variable (SGR), including: Size of the securities company (Size); Self-financing ratio (SFA); Debt to equity ratio (Leverage); Return on equity (ROE); Return on total assets (ROA); Additional capital from profit ratio (RER); and Capital adequacy ratio (Caps).Conclusions: Based on the research, the author offers recommendations for managers of securities companies in making financial decisions