The impacts of export performance on firms profitability evidence from listed aquarium and material companies in Viet nam
Abstract
This study investigates the relationship between export performance and firms’ profitability. The nature of this relationship is examined by on 25 firms coming from two industries, which are aquarium and material. The data covers period 2010 to 2016 on yearly basis. In this study, Return on Asset (ROA), Return on Equity (ROE) and Basic Earnings Power (BEP) are used as measures of profitability. Two variables, which are export revenue and export intensity are used as explanatory variables. All analyzes of this study are conducted by “Stata-14”. The results revealed that export performance has a significant negative influence on firms’ profitability. Additionally, some control variables such as debt ratio, firm age and industry are statistically significant, while firm size does not seem to affect firms’ profitability.
Keyword: Export performance, Firm profitability, Export intensity, Export revenue, Exporting effect, Vietnam economy, Industry effect, Debt ratio, Firm age.