The factors affect financial performance of companies listed on Hanoi stock exchange

Abstract

Profit maximization is an important goal of any business entities, lead to big concern about how to improve financial performance so as to run businesses in a stability and sustainability. Furthermore, in measuring financial performance, several profitability indicators are widely in use as return on assets (ROA), return on equity (ROE)... We did conduct literature reviews and conclude: evaluating the impact of factors on entity financial performance is such an essential topic which has drawn the attention of researchers all over the world and yet Vietnam. However, many studies gave dissimilar results, which indicates there might be differences in nature of the relationship, or factors affiliation in enterprises of different sectors or different countries. This study aims to determine the effect of factors on the financial performance of companies listed on the Hanoi Stock Exchange (HNX) from 2013-2017. The factors include corporate income tax, firms’size, growth of the firm, age of the firm and liquidity. The study used panel data methodology, the FEM model was found to be consistent with data. In this study, variables of return on assets (ROA) used to measure the financial performance of companies. The research revealed that corporate income tax, firms’size and growth of the firm show a significant negative relationship with financial performance. On the other hand, there is a significant positive relationship between liquidity and financial performance. But, the relationship between ROA with the firm age is not significant. Firms’ size and corporate income tax have the greatest influence on financial of companies. The findings of the study will improve the financial performance of companies listed on the HNX.