Factors Affecting The Stock Price: The Role Of Firm Performance In Viet Nam

Abstract

Corporate performance also plays an important role in explaining changes in stock prices in the Vietnamese economy. However, after implementing blanket operations and reversing economic functions along with rapid changes in the business environment, achieving stock price stability becomes difficult. Using Vietnam Stock data from 2019 to 2033, this article aims to explore endogenous and exogenous factors affecting stock prices. Therefore, linear regression analysis and panel data are used as a way to solve the problem. The study also shows that borrowing affects stock prices by correlating DER with Stock Prices and recommends that borrowing is mandatory to increase market awareness. As for the Net Profit Margin (NPM) variable, it has been shown that it has a positive impact on Return on Assets (ROA) and stock price, confirming the importance of profitability and effective use of company assets. A positive relationship between firm size and stock price is observed due to much better market conditions and investor confidence in the large scale of the firm. However, neither the overall impact of DER on ROA nor the moderating role of DER on this relationship is statistically significant. The study contributes to the understanding of the Vietnamese financial market which helps investors, policymakers, and managers of the Vietnamese corporations to get an appropriate guideline in the contemporary environment.