The determinants of profitability : An empirical investigation in manufacturing firms on Ho Chi Minh stock exchange
Abstract
This paper used a sample of 57 manufacturing firms listed on HOSE to
recognize the determinants of profitability. The question of whether firm’s performance
is impacted primarily by firm characteristics was found out in the research. Backed by
Resource-based view model and empirical studies, the analysis was carried out with the
secondary data from 2008 to 2014. This study would focus on the manufacturing firms
listed on HOSE. The total observations would be 399. The generalized least square
regression was applied to fix the autocorrelation and heteroskedascity in the pooled
ordinary least square. Based on the data analysis, the outcomes were the degree and kind
of independent variables affect to the firm profitability. In detail, the proxy of
profitability was EBIT to TA to perform the operational result. The independent variables
were LEV, LIQ, TAN, GRW, SZ, AGE to perform the resources and capability
companies have. There was some significant relationship between mentioned inter-firm
factors and firm profitability, following the results from previous studies.