Abstract
Purpose: This article aims to clarify the relationship between financial analysis and business performance at public universities in Vietnam. In addition, the influence of financial analysis on operational results. Theoretical framework: In the context of increasing financial autonomy in public universities in Vietnam, the issue of financial analysis aims to provide information for managers to plan, organize, control, and make decisions. Financial information must be reliable, transparent, and accountably defined. Most universities in Vietnam are not actively engaged in financial analysis activities, and there are significant research gaps globally. Method/design/approach: The research sample, collected online, consisted of 425 respondents in managerial positions (including accounting, auditing, financial, vice principal, and principal positions) in public universities. Sampling took place over a 3-month period from September 2022 to December 2023. Using quantitative research and the PLS-SEM structural equation modeling in SPSS 20 and AMOS 20 software. Results and conclusion: The study identified two factors with the strongest influence on financial analysis in public universities in Vietnam: (i) the analysis data base (AD); and (ii) the analysis content (CA) and influence of financial analysis on operational results. The research provided in-depth insights and critical discussions and evaluations in financial analysis at public universities in Vietnam, recommending the adoption of public accounting standards for financial reporting developed by the International Public Sector Accounting Standards Board (IPSASB) or the use of EVA indicators (net operating profit after tax minus cost of capital) in financial analysis activities. Research implications: This research uses the contents of financial analysis and operational results based on prior studies in the realm of the public and universities. Within the context of the digital transformation of the entire society and improving the quality of education, these variables are useful solutions for universities. Originality/value: This study uses a new research methodology to analyze and measure the relationship between financial analysis and business performance at public universities in Vietnam. The paper's primary contribution is findings that benefit the public universities in Vietnam in the improvement of their training quality and business performance.
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