Abstract

In the context of Vietnam's international economic integration, improving the performance of enterprises is increasingly important because it not only affects businesses but also affects the development prospects of the economy. The purpose of the paper is to consider the impact of factors on the performance of listed construction companies in the period of 2012-2018. By means of an empirical analysis, this study uses Eviews econometric software and table data techniques. This study found the factors that positively impact on performance are asset structure, capital structure and firm size that negatively impact the performance of Vietnam listed construction firms. These findings support business administrators in selecting appropriate business and production plans to increase the operating performance of businesses in the construction industry. Keywords: Profitability, construction firms DOI : 10.7176/RJFA/11-2-15 Publication date: January 31 st 2020

Highlights

  • In the context of Vietnam's international economic integration, improving the performance of enterprises is increasingly important because it affects businesses and affects the development prospects of the economy.The global economic crisis has strongly affected the Vietnamese economy, causing all businesses to face many difficulties

  • R-square value was found to be 0.630506. This implies that the combined effects of Profitability was found to be negatively correlated with average cover period, debt ratio, asset structure, quick ratio, firm size and sale growth explained 63.05% of the variation in the profitability of constructions companies while the remaining 36.95% was due to the other variables not captured in this study

  • This paper examines the effects of capital structure, asset structure, quick ratio, average payment period, firm size, and revenue growth rates on Vietnamese listed construction enterprises in the period of 2012 - 2018

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Summary

Introduction

In the context of Vietnam's international economic integration, improving the performance of enterprises is increasingly important because it affects businesses and affects the development prospects of the economy. The global economic crisis has strongly affected the Vietnamese economy, causing all businesses to face many difficulties. Vietnam construction industry has experienced the difficult time in 2009-2013. In the period of 2000-2009, the growth rate of construction industry was 9.6% / year and in the period of 2009-2013 reached 4.6% / year. Many businesses have gone bankrupt, one of the reasons is the factors affecting the operational efficiency, which have not been taken seriously in the operation process of enterprises. It is necessary to study the impact of factors on the performance of enterprises. The paper includes 4 main contents: (1) Overview of the impact of factors on firm performance, (2) Research methodology, (3) Empirical results on the impact of factors to the performance of listed construction enterprises, (4) Some recommendations

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