Factors affecting asset investment of public companies in plastic and packaging industry in Vietnam

Abstract

The purpose of this research is to identify and analyze the influence of internal factors on asset investment of public companies in the plastic and packaging industry in Vietnam. The research has built a regression model to determine the relationship of internal factors affecting asset investment of public companies in the plastic and packaging industry in Vietnam. The strength of this research is to use the E-view software in quantitative analysis to build a panel data regression model. At the same time, the researchers used the Hausman test to select the appropriate model compared to other research. The data of the research are collected and calculated from the financial statements of 27 companies in the plastic and packaging industry in Vietnam from 2013 to 2020. The research results show that such factors as sale, equity, and debt ratio have a positive impact on asset investment, the return on assets has a negative impact on asset investment, while the average loan interest rate does not affect the asset investment of enterprises. Therefore, the author has made recommendations to help public companies in the plastic and packaging industry in Vietnam to improve the efficiency of asset investment. The results of this research are very useful for corporate financial managers in helping them make appropriate financial decisions for their companies.