Ratio Of Current Assets Research Articles

EFFECT OF LIQUIDITY AND PROFITABILITY ON SHARE PRICES (STUDY ON CONSTRUCTION COMPANIES LISTED ON THE INDONESIAN STOCK EXCHANGE)

This study aims to analyze the effect of liquidity and profitability on share prices in construction sub sector companies listed on the Indonesia Stock Exchange (BEI) for the 2019-2022 period. Liquidity is measured by the ratio of current assets to current liabilities, while profitability is measured by net profit. Data was collected from company financial reports and analyzed using the multiple linear regression method. The research results show that liquidity has a positive and significant influence on share prices, which shows that the higher a company's liquidity, the higher its ability to fulfill its operational obligations. Apart from that, profitability also has a positive and significant influence on share prices, indicating that the company's success in generating profits has an impact on increasing demand for shares and increasing share prices. Apart from that, together, liquidity and profitability also have a significant effect on share prices. This research contributes to the understanding of the factors that influence share prices in the context of construction companies.

Analisis Laporan dan Kinerja Keuangan Pemerintah Daerah Kabupaten Sambas

This research aims to analyze the financial performance of the Sambas Regency Regional Government for 5 years from 2017 to 2021 and test whether there are differences in the performance of the degree of decentralization, performance of regional financial independence, performance of operating expenditures, and performance of capital expenditures. The analytical tools used are financial ratios, namely liquidity ratios, leverage ratios, debt ratios, productivity ratios and operating ratios. The research uses quantitative descriptive data analysis methods. The research results show that the liquidity ratio which consists of the average current ratio is 0.82, meaning that every Rp. 1,- of current debt is guaranteed by Rp. 0.82,- of current assets; The average cash ratio is 0.35, meaning that for every Rp. 1,- of current assets, Rp. 0.35 is cash and cash equivalents; the average cash to current liabilities is 0.29, meaning the regional government's ability to immediately pay every Rp. 1.- of current debt using cash and cash equivalents is Rp. 0.29,-; The average Quick Ratio is 0.60, meaning that the local government's ability to fulfill its short-term obligations for every Rp. 1,- using cash, cash equivalents and receivables is Rp. 0.60,-; The average cash flow ratio is 2.31, meaning the ability of a Regional Government's operating cash flow to pay for every Rp. 1,- of current debt owned using operating cash of Rp. 2.31,-. The leverage ratio measured is the Short Term Debt to Long Term Debt Ratio of 1.00. The debt ratio measured is the Total Liabilities to Current Assets Ratio. The average is 1.24 and the average Current Liabilities to Total Asset Ratio is 0.05, meaning that for every R.1,- debt is guaranteed by total assets of Rp.0.05,- The productivity ratio measured is Current Assets to Total Assets Ratio . The average is 0.04, meaning that for every Rp. 1,- current assets used for operational activities is Rp. 0.04,- Quick Asset to Inventory Ratio, the average is 2.67. The operating ratios measured include the average Earning Power of Total Investment of 0.10. The average financial independence ratio is 0.11 or 11%. From the aspect of relationship patterns and level of capability, the region is in the very low category with an instructive relationship pattern. The Public Participation Level Ratio is 0.07. This ratio shows the level of public participation in paying taxes, in this case all regional tax revenues, tax revenue sharing, both central and provincial. The higher the ratio value of the level of public participation of a Regional Government, the better it will be. From the calculation results it can be seen that for every Rp. 1,- Revenue, which comes from taxes is Rp. 0.07,- Debt Service Coverage Ratio (DSCR) for the Regional Government of Sambas Regency, the average for 2017-2021 is 2.79 or still above the minimum requirement of 2.5 as regulated in PP No. 107 of 2000 concerning Regional Loans article 6 letter b. However, in 2020 the DSCR was 2.35 and in 2021 it was 1.79, which is below the minimum requirements as regulated in PP 107/2000. This condition is caused by the relatively increasing number of regional loans from year to year. So the regional government for the coming year must ensure that the DSCR is still at the minimum limit outlined by the central government because if loans continue to increase there will be concerns that the Sambas Regency Regional Government will not be able to meet mandatory spending as regulated by PP 30/2011 concerning regional loans explanation of article 15 paragraph (1) letter b.

The Impact of Firm Risk and the COVID-19 Crisis on Working Capital Management Strategies: Evidence from a Market Affected by Economic Uncertainty

The present study aims to investigate the impact of the COVID-19 crisis and firm risk on working capital management policies among manufacturing firms listed on the Tehran Stock Exchange (TSE). The study sample consists of 1200 observations and 200 companies listed on the TSE over a six-year period from 2016 to 2021; furthermore, the statistical method used to test the hypotheses is ordinary least squares (OLS). The results show that the COVID-19 pandemic has led managers to increase current assets to total assets ratio (CATAR), current ratio (CR), quick ratio (QR), net working capital (NWC), cash to current assets (CTCA) ratio, while it has caused a decrease in operational cycle (OC), days account receivables (DAR), and current liabilities to total assets ratio (CLTAR). Furthermore, we find that the higher the company’s risk, the more managers are motivated to embrace the working capital investment policy, net working capital, cash to current assets ratio, and cash conversion efficiency (CCE). In general, our findings indicate that during times of crisis, Iranian companies tend to adopt conservative working capital policies to ensure sufficient liquidity to respond appropriately to unforeseen events. In this study, the theory of liquidity preference aligns with the observed behavior of firms in response to the COVID-19 crisis and firm risk, where the emphasis on liquidity and short-term financial stability becomes paramount.

DETERMINANTS OF CAPITAL STRUCTURE IN THE AGRICULTURAL SECTOR: EMPIRICAL EVIDENCE FROM LISTED COMPANIES

This study investigated the capital structure of 18 publicly traded agricultural companies over a 10-year period (2012-2022), specifically focusing on short-term debt to total liabilities (SHTDTL). Employing a dataset of 121 observations, the strategic financing decisions of these firms in the Republic of Srpska’s stock market were analyzed. The study examines the impact of various factors, including total debt to total equity (TDTC), tangible assets (TOA), company size (CS), current assets ratio (CR), current assets to total assets (CAA), return on equity (ROE), and return on assets (ROA), on capital structure choices. Results reveal that TOA, CAA, and ROE significantly positively influence the short-term debt ratio, while CS and ROA have a significant negative impact. This research sheds light on the financial decision-making of agricultural enterprises, offering insights that can inform their financing strategies and improve financial performance.

Financial statement analysis was conducted to assess the financial performance of PT Unilever Indonesia Tbk in the 2018-2022 period using the Current Ratio, Debt Equity Ratio, and Return on Asset

Financial performance is a formal effort to evaluate the efficiency and effectiveness ofa company in generating profits. The method used is a qualitative method using a descriptive approach; the subject in this study is PT Unilever Indonesia Tbk and the object in this study is the financial statement data of PT Unilever Indonesia Tbk. The data source used in this study is secondary data taken from the official website of PT Unilever Indonesia Tbk. This study aims to determinethe financial performance of PT Unilever Indonesia Tbk using the CurrentRatio, debt-to-equityRatio, and return on assets. It is expected to provide helpful information for companies and investors in making investment decisions. Based on the attached data, it shows that during the 2018-2022 period, the average Ratio of each Ratio in PT Unilever Indonesia Tbk is as follows: at the liquidity ratio of current assets of 8,178,740 and current liabilities of 12,488,997. At the Ratio of total debt solvency of 14,415,546 and total equity of 5,223,178. Theprofitability ratio of total assets amounted to 56,794,724, and net profit amounted to 6,955,753. From the results of this study, the Company's financial performance shows a low level of liquidity, a higher level of risk due to the use of more considerable debt, and suboptimal operational performance. Therefore, companies must pay attention to cost management, debt management, and sales activities to improve financial performance. TheCompanyCompany should increase sales toenhance efficient financial performance. This research is expected to make theoretical contributions to the literature in this context, including in the context of economic and banking management.

印度尼西亚和土耳其旅游业上市公司在covid 19爆发时的财务分析

COVID-19 outbreak is global disease that impact most of industries in the world. Tourism is one of industry shocked by COVID-19. Curfew policy and social distance caused most of tourism sector such as tourism, hotel, and restaurant were closed. The purpose of this study is to analyze financial statement of tourism industries in Indonesia and Türkiye using financial ratio analysis. We employ financial analysis of credit (risk) analysis and profitability analysis during lockdown. We employ 27 financial statements of tourism firms in both countries in 2020. Based on the result, we found that profitability ratio that have significant differences in both countries such as ROA, ROE, and net margin. Although other measurement such as, current asset ratio, quick ratio, asset turn over, debt to equity ratio, and short term debt to equity ratio have no significant. The result informs that tourism of listed firms in Indonesia and Türkiye have significantly difference in profitability ratio. However, capability of managing liquidity, utilizing asset and managing capital structure and solvency has no significant difference. The result implies that tourism industries both in Indonesia and Türkiye have similar issues in liquidity, utilizing asset, and solvency, because they have to face diminishing income during COVID-19. Hence, it will effect on the liquidity.

Assessment of business activity indicators of enterprises in the conditions of martial law

The article analyzes the efficiency of agricultural enterprises in the pre-war period and the period of Russian military aggression. The author has examined indicators of business activity of agricultural enterprises in Kharkiv region in 2018, 2020 and 2022. A decrease in the entire set of these indicators (asset turnover ratio, current assets turnover ratio, fixed assets turnover ratio, receivables and payables turnover ratios, equity turnover ratio) was established in 2022 as compared to their values in 2018 and 2020. These research results confirmed the deterioration of the performance indicators of agricultural enterprises under martial law. The article estimates reliability of differences between the average values of the analyzed indicators in the groups in 2020 and 2022 ,using the Student's t-test. The probability that the average values may be random is almost 0. That is, the obtained average values of business activity indicators of agricultural enterprises in 2020 and 2022 are reliable and nonrandom. The research, using factor analysis, confirms relationship between the studied features (variables). In particular, the author determined a high degree of correlation in 2020 between the turnover ratio of assets and the turnover ratio of current assets and between the turnover ratio of receivables and the turnover ratio of payables. In 2022, a high degree of interrelationship remained only between asset turnover ratios and current assets turnover ratio. This may indicate a much greater differentiation of turnover ratios of receivables and payables within the population, which in turn, may be due to factors of external influence, in particular, military actions. There is, however, a question on the necessity to conduct a separate study of the influencing factors on the degree of interrelationship between the turnover ratios of receivables and payables in agricultural enterprises. Key words: efficiency, agricultural enterprises, indicators of business activity, reliability, Student's t-test, factor analysis, military actions.

PENGARUH KINERJA KEUANGAN TERHADAP HARGA SAHAM STUDI PADA NEGARA ASEAN-5

The objective of this research is to analyze the impact of financial performance on stock prices in the ASEAN-5 countries. The financial ratios analyzed include, Liquidity Ratio, proxied by the Current Asset Ratio (CR), Profitability Ratios, proxied by Return on Assets (ROA) and Return on Equity (ROE), Solvency Ratio, proxied by the Debt to Equity Ratio (DER), Activity Ratio, proxied by the Total Asset Turnover (TATO). The data used in this research include financial data from companies listed on the stock exchanges of the ASEAN-5 countries during the period from 2020 to 2022. This study uses secondary data obtained from the websites of each country's stock exchange. The sample consists of 225 companies with a total of 675 data points. The data analysis method employed is panel data regression (Eviews 12). The results of the study indicate that the liquidity ratio (CR), solvency ratio (DER), and activity ratio (TATO) do not affect stock prices. This suggests that investors in the ASEAN-5 region do not primarily consider these three ratios in their investment decisions. Conversely, profitability ratios (ROA and ROE) are proven to affect stock prices. High profitability ratios increase investor confidence and interest, thereby driving up the company's stock price. These findings provide insights for company managers and investors in understanding the factors that influence stock prices in the ASEAN-5 capital markets.

The Impact of Working Capital Management on Profitability: Evidence from Non-Financial Firms Listed in NEPSE

Efficient working capital management (WCM) is expected to contribute positively to the firm's profitability. With the aim of analyzing the impact of WCM on the profitability of non-financial firms listed in NEPSE, this paper has used current ratio (CR), debt ratio (TDTA), current assets to total assets (CATA), current liabilities to total assets ratio (CLCA) and inventory conversion period (ICP), receivable conversion period (RCP), payable deferral period (PDP), and cash conversion cycle (CCC) as the measures of WCM. This paper has used annual panel data of 12 non-financial NEPSE-listed firms from 2005/06 to 2019/20. Based on the result of the Breusch and Pagan Lagrangian multiplier and Hausman tests, the study found the Random Effect model as the appropriate regression model. Using the Random Effect regression model, this paper has found the significant impact of WCM on profitability. Likewise, this paper found a significant negative impact of the current ratio (CR) and debt ratio (TDTA) and a significant positive impact of the ratio of current assets to total assets (CATA) on profitability. Further, the finding also reveals that there is an insignificant negative impact of the inventory conversion period (ICP) and receivable conversion period (RCP) and an insignificant positive impact of the payables deferral period (PDP). Thus, this paper concludes that Nepalese non-financial firm can increase their profitability by decreasing the current ratio (CR) and debt ratio (TDTA) and increasing the ratio of current assets to total assets (CATA).

Analisis Profitabilitas, Likuiditas, Struktur Modal dan Ukuran Perusahaan terhadap Nilai Perusahaan


 The purpose of this study is to investigate the effects of company size, profitability, liquidity, capital structure, and firm value. The population in this study is listed on the Indonesia Stock Exchange between 2018 and 2021 and consumes beverages in the food subsector. Using a purposive sampling strategy, this research model generated 48 sample data from 12 companies chosen as samples. ROA is used as a proxy for profitability by dividing net income by total assets. The proxy for liquidity is the current ratio, which is the ratio of current assets to current liabilities. The DER proxy, which is the formula for total debt divided by total equity and company size using natural logarithms (total assets), and the PBV, which is the market price per share divided by book value per share, are utilized in the capital structure. Using SPSS (Statistics Product and Service Solution) and assistive technology, multiple linear regression analysis models are utilized for hypothesis testing. Firm value is positively impacted by profitability, liquidity, and firm size, according to the findings of this study, whereas firm value is negatively impacted by capital structure.
 Keywords: Firm Value, Profitability, Liquidity, Capital Structure, and Company Size

Profitability determinants of companies in IT industry: case of Ukraine

Purpose. To identify patterns of profitability of IT enterprises by quantitative evaluation of the relationship of profitability of enterprises with the structure of capital and assets, taking into account the level of business activity and the main economic activity, as well as the formation of appropriate recommendations. Methodology. The empirical basis of the study was the aggregate performance of enterprises whose main economic activity belongs to Chapter 62 of the NACE “Computer programming, consultancy and related activities” during 2013–2020. Correlation and regression analysis was used to build a multifactor model of linear regression, which describes the dependence of return on assets from the ratio of long-term and short-term liabilities and provisions to liabilities of the balance sheet, the ratio of current assets to balance sheet assets, total assets and main economic activity. Findings. It has been established that the capital structure of IT companies is unsatisfactory due to the dependence on external sources of funding, including current liabilities, which have a negative impact on return on assets. It has been found that the structure of assets is dominated by current assets, the growth of which has a positive impact on the profitability of enterprises in the industry. This indicates the need to optimize non-current assets, given the level of their involvement in the production process. It is proved that by expanding markets, it is possible to ensure further growth in profitability of enterprises in the industry, as business activity has a positive effect on return on assets. The return on assets varies depending on the main type of economic activity. Originality. The relationship is identified between the efficiency of IT companies and the structure of their capital and assets, business activity and type of economic activity. Practical value. The applied value of the study is the ability to predict the profitability of assets of IT companies depending on the structure of sources of funding for their activities and areas of asset placement, business activity and the main type of economic activity. The recommendations can be used to improve the state policy of digital economy in terms of justifying the need to encourage business owners to reinvest profits, to involve enterprises more actively in national digital projects and support the product business model.

Inter-Relationship between Buffettology and Several Companies in the LQ-45 Index, Period of 2010-2021

This study is intended to investigate whether the Indonesian Reference Index, in this case, the LQ 45, consistently applies the principles of prudent investment, known as the Buffettology principle. Buffettology which is a derivative of its predecessor Benjamin Graham, has several characteristics or yardsticks in investment and financial decisions. Buffettology which requires a careful choice of companies or stocks, in terms of the Debt to Equity ratio, should be below 0.5 and have current assets to current debt ratio above 1.5. Another thing is to choose a company with an undervalued category but has good prospects. This study takes a research sample of 32 companies that are members of the LQ-45 option outside the banking sector that are traded on the Indonesian Stock Exchange for a period from 2010 to 2021. This study finds that the Debt to Equity ratio variable greatly affects stock returns and Net profit margin. with a negative effect. This means that the smaller the value of the D/E ratio, the higher the company's return . The natural Quick ratio variable, which is defined as the ratio of current assets to current liabilities, also significantly affects stock returns. The NPM variable also affects the company's return positively. In this case, investors' expectations of companies that have low D/E are more considered to have prospects as good companies in the future, in addition to the high ratio of Quick ratio and NPM ratio. The managerial implication of this research is the need for financial services authorities to pay attention to excessive company performance in debt expansion.

Determinante profitabilnosti mikropoljoprivrednih preduzeća iz Republike Srbije

The paper analyzes the determinants of profitability of microagricultural enterprises that operated in the Republic of Serbia, the analysis was carried out for the period from 2010 to 2019. Using panel regression analysis, the influence of various microeconomic and macroeconomic determinants on profitability, measured by the rate of return on assets, was examined. The following indicators were observed as microeconomic determinants of profitability: liquidity, financial leverage, indebtedness, asset structure indicator, total business asset turnover ratio, fixed asset turnover ratio, current asset turnover ratio, inventory turnover ratio, trade receivables turnover ratio and sales rate. Indicators of the growth rate of the gross domestic product and inflation were observed as macroeconomic determinants of profitability. Based on the results of the panel regression analysis, it was determined that the turnover ratio of total business assets, the turnover ratio of current assets and the growth rate of the gross domestic product have a positive and statistically significant influence on the profitability of the observed companies. Indebtedness, an indicator of asset structure and the turnover ratio of fixed assets have a negative and statistically significant impact on the profitability of the observed companies. It is expected that the obtained results will be useful to all interested parties in agribusiness, primarily in the context of the analysis of factors that have been determined to have a negative impact on the profitability of the observed companies.

Impact of Islamic Financing on Working Capital Management of Micro, Small, and Medium Enterprises in Tanjungpinang City, Indonesia

The purpose of this study was to analyze the effect of Islamic financing on the ability of working capital management of micro, small, and medium enterprises (MSMEs) in Tanjungpinang City, the Riau Islands Province, Indonesia. This study uses primary data that is processed quantitatively by using multivariate regression analysis using Stata. Primary data in this study were obtained from respondents using questionnaires, and secondary data were obtained from Statistics Indonesia. The research location in this study was Tanjungpinang City. The sample was determined using non-probability sampling with a sample of 125 MSMEs. Data collection techniques were carried out by conducting interviews and questionnaires. The results showed that the factors of musharakah and murabahah financing affect the variables such as average billing period, average payment period, cash turnover, and the ratio of current assets to total assets in MSMEs in Tanjungpinang City. MSMEs can adopt Islamic financial models to reduce operational costs by eliminating interest rates.

The Relationship between Working Capital and Profitability of Companies Operating in the Food Industry in the Czech Republic

The aim of this article is to determine the relationship between working capital and profitability of companies operating in the food industry in the Czech Republic and then find out how working capital affects the profitability of these companies from 2009 to 2019. In the first part of the research we estimate the links between working capital measured by variables such as cash conversion cycle, current assets ratio, current liabilities ratio, working capital ratio and corporate profitability measured by return on sales. In the next part of the research, we estimate the effect of working capital measured by variables such as cash conversion cycle, current assets ratio, current liabilities ratio, working capital ratio on corporate profitability measured by return on sales. Correlation analysis and the GMM method will be used to determine the relationship between working capital and the profitability of companies and how working capital affects the profitability of these companies. The results of the correlation analysis showed statistically significant links between return on sales and variables such as cash conversion cycle, current assets ratio, current liabilities ratio and working capital ratio. The results of the GMM method showed a statistically significant effect of variables such as cash conversion cycle, current assets ratio, current liabilities ratio and working capital ratio on the profitability of companies measured by the return on sales indicator. All mitigated effects have been demonstrated for companies operating in the food industry as a whole, as well as in the production of food products and beverages.

DAMPAK COVID-19 TERHADAP KINERJA PERUSAHAAN PROPERTI DAN REAL ESTATE DI INDONESIA TAHUN 2019 DIBANDINGKAN TAHUN 2020

The purpose of this study was to determine the impact of the coronavirus on the performance of companies in the property real estate sector in Indonesia. In this study, the company's performance can be measured by the current ratio, debt to equity ratio, total asset turnover, and return on assets. This study uses secondary data from property and real estate financial statements on the Indonesia Stock Exchange and uses property and real estate companies that have been listed on the Stock Exchange. The data analysis method used the Wilcoxon signed rank test, which had been tested for normality before using SPSS version 25. The results of data analysis show that the current asset ratio, even though it experienced a decline, the company was not affected by the COVID-19 pandemic. Although the pandemic had an effect, it increased, while the ratio of total asset turnover and return on assets experienced a significant difference because it decreased compared to before the COVID-19 pandemic.

Analisis Kinerja Keuangan pada Rasio Aktivitas dan Rasio Likuiditas Terhadap Perusahaan Radiant Utama Interinsco Tbk Tahun 2016-2020

Ratio analysis is a method used to analyze a company's financial statements. The purpose of this study is to determine the performance of financial statements by analyzing the ratio of activity and liquidity based on those listed on the IDX, namely the financial statements of PT. Radiant Utama Interinsco Tbk 2016-2020. This study uses a descriptive type of research with a quantitative approach. In this case, the report used to analyze the financial statements of PT Radiant Utama Interinsco Tbk. By reviewing financial reports, performing calculations, comparing or measuring, and applying reporting results from research. The technique used consists of the use of reports related to the analysis of activity ratios and liquidity ratios. Based on the calculation results of the table above, it can be concluded that the ratio of Current Assets of PT Radiant Utama Interinsco Tbk from 2016 to 2020 has an unstable value. Because in 2016 to 2017 it decreased, while in 2018 to 2019 it increased and again decreased in 2020. It can be seen in the current ratio of PT Radiant Utama Interinsco Tbk which is not satisfactory because it is still below the industry average value. Suggestions in this study is that PT Radiant Utama Interinsco Tbk needs to evaluate management performance, whether it runs effectively or not. In addition, it is also necessary to re-evaluate the use of its assets, to be able to measure the level of efficiency in the use of company resources. Because seen from the ratio of Working capital turn over and Fixed assets turn over PT Radiant Utama Interinsco Tbk continues to decline from year to year. In this case the management must work harder to increase the effectiveness and efficiency of its assets.

Peranan Struktur Modal, Net Financing, Profitabilitas dan Likuiditas pada Kualitas Laba Perusahaan Properti

This study aims to examine and analyze the effect of capital structure, net financing, profitability, and liquidity on earning quality. This study uses data from property companies in Indonesia for the period 2013-2018 with 20 samples of companies. In this study, capital structure is calculated based on the capital structure using financial leverage measure with the formula debt to equity ratio. Net financing is measured using net equity in the current period less current debt to total assets in the previous period. Profitability is measured using return on equity, current asset ratio is used for liquidity. Earnings quality is calculated based on the earnings response coefficient. The results show that capital structure has a positive effect on earnings response coefficient, net financing has no effect on earnings response coefficient, profitability has a positive effect on earnings response coefficient and liquidity has no effect on the earnings response coefficient. Capital structure and profitability have a positive effect on earnings quality, with this condition company needs to focus on how to manage capital structure and focus on profitability to keep maintain earnings quality. Net financing and liquidity have no effect on earnings quality, have a meaning the company that has a good capital structure and profitability, will impact to a good capability to cover the liquidity and manage asset, debt, and net worth.

THE EFFECTS OF SELECTED FINANCIAL RATIOS ON PROFITABILITY: AN EMPIRICAL ANALYSIS OF REAL ESTATE FIRMS IN VIETNAM

The paper examines the determinants of profitability of real estate companies by using panel data of Vietnamese listed companies on the Hanoi stock exchange (HNX) and Ho Chi Minh City stock exchange (HOSE) from 2007 to 2020. Profitability ratios are measured by return on assets (ROA) and return on equity (ROE). The results indicate that the cost on revenue ratio, debt-to-equity ratio and the crisis and COVID-19 pandemic are negatively correlated with firm profitability. Meanwhile, the sales to current assets ratio, money supply growth rate and economic growth rate (GDPG) provide a positive correlation with profitability. We find that firm size and equity to total assets have positive effects on ROA, while there is a negative relationship between equity to total assets and ROE, and not enough evidence to conclude how firm size affects ROE. The study thereby provides suggestions and recommendations for the administrators of the government, real estate companies and investors in Vietnam.

The Impact of Capital Structure on the Performance of Chinese E‐Commerce Industry Companies (2013–2019 Panel Data)

This research examined how to estimate performance in China’s e‐commerce industry, by taking 2013–2019 e‐commerce listed companies as the research samples and using an empirical research method to study the relationship between capital structure and firm performance. The empirical results show that the debt‐to‐asset ratio and the long‐term interest‐bearing debt ratio have a negative impact on firm performance, but the impact of the long‐term interest‐bearing debt ratio is not significant. Moreover, the short‐term interest‐bearing debt ratio and the total asset turnover ratio have a positive impact on firm performance, while the impacts of the current assets ratio and intangible assets ratio on firm performance are not significant. The following suggestions are drawn from the results in order of importance. (1) Enterprises should maintain a reasonable debt‐to‐assets ratio and a stable capital structure and appropriately increase the proportion of short‐term liabilities. (2) Firms should moderately invest to expand their scale and improve their profitability, so as to increase retained earnings and develop internal financing channels.