Untitled TỔNG LIÊN ĐOÀN LAO ĐỘNG VIỆT NAM TRƯỜNG ĐẠI HỌC TÔN ĐỨC THẮNG KHOA TÀI CHÍNH NGÂN HÀNG BÀI NGHIÊM CỨU NHÓM MÔN THỰC HÀNH MÔ HÌNH TOÁN KINH TẾ ĐỀ TÀI PHÂN TÍCH CÁC NHÂN TỐ ẢNH HƯỞNG ĐẾN HIỆU Q[.]
TỔNG LIÊN ĐOÀN LAO ĐỘNG VIỆT NAM TRƯỜNG ĐẠI HỌC TƠN ĐỨC THẮNG KHOA TÀI CHÍNH NGÂN HÀNG BÀI NGHIÊM CỨU NHĨM MƠN: THỰC HÀNH MƠ HÌNH TỐN KINH TẾ ĐỀ TÀI: PHÂN TÍCH CÁC NHÂN TỐ ẢNH HƯỞNG ĐẾN HIỆU QUẢ TÀI CHÍNH: NGHIÊN CỨU ĐIỂN HÌNH TẠI CÁC CÔNG TY CỔ PHẦN NGÀNH CÔNG NGHỆ THÔNG TIN ĐƯỢC NIÊM YẾT TRÊN SÀN CHỨNG KHOÁN VIỆT NAM Giảng viên hướng dẫn: PHÙNG QUANG HƯNG Lớp: MƠ HÌNH TỐN KINH TẾ (Ca 3, Thứ ba) – Nhóm: 03 Danh sách Sinh viên thực hiện: VÕ HOÀNG NHÂN (B19H0263) PHAN THANH HIẾU (B19H0195) HỒ THỊ TUYẾT ĐOAN (B19H0177) TỪ LÊ MINH NGÂN (B19H0247) ANALYSIS OF FACTORS AFFECTING FINANCIAL PERFORMANCE: TYPICAL STUDY AT THE JOINT STOCK 0 Tieu luan COMPANY LISTED INFORMATION TECHNOLOGY ON VIETNAM STOCK EXCHANGE ABSTRACT: The objective of the study is to examine the factors that affect the financial performance of the companies from which to make some suggestions for managers to improve financial performance The study used data from 22 companies that share the information technology sector listed on stock exchanges in Vietnam period 2007-2018 in the field of information technology The research results have shown that the effectiveness main (ROA) of companies significantly affected by the ratio of the state capital (STATE), the management capacity (MC), firm size (SIZE), and the company's business cycle (BS) On the other hand, the study also pointed out the positive impact (+) of ROA on the profitability ratio on equity (ROE) Keywords: Production cycle business, financial performance, the company shares listed information technology industry INTRODUCTION: Today, technology is proliferating, especially in information technology have an important role in bringing a new era of modern advanced technologies worldwide, including Vietnam Therefore, need to understand the factors affecting financial performance and this will be the baggage to participate in the market in this area, most notably as ROA, ROE, MC, SIZE, STATE, BS, CR, QR, and DFL Vietnam's stock market in the period 2011-2013 continuously fluctuated strongly, seriously affecting companies Two factors may explain this, which is endogenous and exogenous in which one of the endogenous factors is very important that the financial performance of companies When analyzing the research and data companies in the information technology industry, we discovered that there are companies with negative profits after tax during 2011, 2012, and 2013 For example, the company technical Services Joint-stock Telecommunications (TST), JSC Telecommunications (UNI), JSC VITECO Telecommunications technology (VIE) However, there are companies with profits after higher taxes or even flourished during that period For example, Van Lang Technology Development and Investment Joint Stock Company (VLA), Vietnam Electronics and Informatics Corporation (VEC), This leads to the question: What factors affect the financial performance of the company shares listed on the stock exchange in Vietnam? If so, how many factors? In addition, the level of impact like? The research focused on studying the factors that affect the financial performance of the listed joint-stock 2|Page 0 Tieu luan 3|Page 0 Tieu luan 4|Page 0 Tieu luan 5|Page 0 Tieu luan Table The previous related research Author Research method and sample Investigate the factors affecting the profitability and growth of employment in the manufacturing Agiomirgiannakis, G., sector of Greece in the period from Voulgaris, F and 1995 to 1999, analyzing the question Papadogonas, T (2006) of whether factors such as company size, age, leverage debt, management efficiency, and export-oriented companies Research results Factors such as the size of a company and economic ratios that affect the growth of the company in particular and the national economy in general Determinant of bank profitability If company size is too large, it can harm financial performance due to poorly controlled or even corruption Based on the disclosure of timely annual reports to confirm and modify their expectations about the current economic outlook and the future of the company Factors affecting the financial performance of the company Based on the disclosure of timely Almajali, Y.A, Alamro, annual reports to confirm and modify S.H and Al-Soub, Y.Z their expectations about the current (2012) economic outlook and the future of the company Factors affecting the financial performance of insurance companies in Jordan listed in Amman Stock Exchange Yuqi, L (2008) Liargovas and Skandalis (2008) companies listed on Vietnam's stock exchanges, more precisely Corporation Information Technology The team used the method of correlation analysis and 6|Page 0 Tieu luan multiple regression analysis Strictly research also indicates factors the state capital ratios, company size, ratio of capacity management, business cycle strong impact on financial performance Moreover, the group is strictly between the ROA and ROE depth The layout of the study will include: I Introduction II Basic theory a The previous related research b The concept and meaning of each financial indicators used in the study III Data and research methods IV Research model, research hypotheses b The concept and meaning of each financial indicators used in the study If the financial performance measures are a common and important concept and meaning of each financial indicators used in this study is what? And why they need to analyze the company shares information technology financial performance on the stock market i Return on Asset (ROA) ROA (Return on Assets) - it is the return on assets, an indicator showing the correlation between the profitability of a company compared to its main assets ROA gives to know the effectiveness of the company is using assets to generate earnings ROA = V Research results VI Conclusions and recommendations VII References BASIC THEORY a The previous related research Financial performance important role for businesses in particular and the economy in general There are many studies on financial performance and the factors affecting it Search gives different figures on financial performance but the main index was ROA, ROE, MC, SIZE, STATE, BS, CR, QR, and DFL, the popularity index for measuring the competitiveness of the company's ROA and ROE Table The previous related research ROA shows that a business has invested how much profit on assets The higher the ROA, the use of corporate assets more effectively ii Return On Equity (ROE) ROE (Return On Equity) - it is the return on equity, and return on equity also If the analysis, there will be a lot of interesting information about the business results as well as the financial picture of the business behind this indicator ROE = ROE shows one pile of equity which now spent to serve activity, how much profit The higher the ROE, the use of corporate funds as efficiently 7|Page 0 Tieu luan iii The size of business (SIZE) Large companies can exploit economies of scale and therefore more efficient than small companies The size of a business can be evaluated based on criteria such as the total number of employees, total revenue, or total assets Company size is calculated by total assets is measured Moreover, small companies may have less energy than large companies can because they are difficult to compete with larger companies, especially in a highly competitive market On the other hand, when companies become larger, they may be ineffective, leading to reduced financial performance iv Management competence in an index (MC) Management competence in an index (MC) is an indicator of leadership and supervision of the management level in the company MC = It may include the ability to plan and divide the work efficiently, respond quickly to solve the problem, have indepth knowledge and skills necessary software v Business cycle (BS) Business cycle (BS) is the period from when the raw materials are put into production until the finished product fabrication, inspection, and storage of finished products It includes the time to complete the work in process technology; time to deliver; technical testing time; work in progress stops at work, in the intermediate repository, and non-production shifts BS = Turnaround time inventory + Turnaround time accounts receivables Shorter production cycles, which indicates how efficient the use of machinery and production areas Production cycles affect working capital needs and the effective use of working capital in production In competitive markets, production cycles shorter change the ability of the production system as possible to respond to the changes Moreover, trade receivables faster turnaround, the company recover the debt faster, increasing capital turnover, reduce costs related to accounts receivable The dual impact of the shortened business cycles increases profitability vi Degree Of Financial Leverage (DFL) Degree Of Financial Leverage (DFL) is a combination between liabilities and equity in the management of the financial policy of the enterprise DFL= Degree Of Financial Leverage is the degree of use of loans in the total capital of a company in the hope of increasing return on equity (ROE), or earnings per ordinary share (EPS) vii Quick raito (QR) Quick ratio (QR) is an indicator of the short-term liquidity position of the 8|Page 0 Tieu luan company and measures the ability to meet the short-term obligations of the company with its liquid assets QR = It shows the ability of the company to immediately use assets almost his cash (assets that can be converted quickly into cash) to pay the debts of your current, it is also known as the acid test ratio viii Current ratio (CR) Current ratio (CR) is the ratio of liquidity solvency measure short-term obligations of the company or the obligations due within one year CR = It gives investors and analysts to know how a company can maximize existing assets on the balance sheet accounting to meet its current liabilities and other payables DATA AND RESEARCH METHODS Research samples are 22 joint-stock companies in the information technology sector listed on stock exchanges period 2007 - 2018 Group uses the information gathered from the report prospectus, financial reports, and information on the companies on the website of the company and the site CafeF, Vietstock, cophieu68 The data analysis method used in the study is the ratio method Analyzing financial ratios is the use of various techniques to analyze the financial statements of the enterprise to grasp the situation of the financial realities of the business, which made plans for production and business most effective for calculating the ratios measuring the financial performance (ROA, ROE), business cycle (BS) Degree of Financial Leverage (DFL) and the proportion of the state capital (state) and the percentage measure the impact of factors such as solvency (QR, CR), capacity management committee (MC) + Advantages: it evaluates the efficiency and performance of the company's business operations, evaluates the efficiency of the use of company resources The ratio of financial structure: reflects the extent to which businesses use to paying off debt reflects the degree of financial autonomy of enterprises Moreover, it also guides the forecast and plans production and business activities, investment decisions and funding to deal with the financial markets determine the risks and profits + Disadvantages: we cannot recognize inaccurate financial statements The time element is not mentioned and is difficult to conclude the financial situation good or bad Moreover, the planning could not feasible for the business's multidisciplinary activities Besides, the group also uses statistical analysis methods Statistics is a system of methods (collecting, synthesizing, and presenting data, and calculate the characteristics of the object of study) to cater for the analysis, prediction, and decision making Purpose cranes Group 9|Page 0 Tieu luan was to examine the relationship between the dependent variable and the independent variables, the paper uses the statistical method described, correlation matrix, check the phenomenon autocorrelation (Durbin-Watson), multiple regression method and multicollinearity test RESEARCH MODEL AND RESEARCH HYPOTHESES a Research model Based on research and the reality of Vietnam, offering theoretical models are: ROA = β0 + β1*STATE+ β2*CR+ β3*DFL+ β4*MC+ β5*SIZE+ β6*BS+ β8*QR+ ε (1) ROE = β0 + β1*ROA+ ε (2) ROA: Return on total assets ROE: Return on equity STATE: State capital ratio DFL: Degree of Financial Leverage MC: Management competence index SIZE: The size of the company BS: Business cycle QR, CR: Short-term solvency b Research hypotheses i Financial performance The business performance of the enterprise is a general economic indicator that reflects the level of use of the elements of the production process Business performance is also reflected in the maneuver of the corporate governance between theory and practice to make the most of the weakness of the manufacturing process, such as machinery and equipment, raw materials, labor to improve profitability Overall ROS, ROA, ROE is a measure used the three most popular in assessing the financial performance of the business In this study, the group will mainly use ROA and ROE to assess the financial performance of the companies that share industry information technology listed on Vietnam's stock by these indicators may reflect how to look past, shows the operation of the enterprise business-like Besides, these indicators also help us have a look at easy ways to compare businesses together Moreover, the final objective of financial management is to maximize the benefit of the owner so that after examining the factors affecting the ROA, the authors examine the impact of ROA over ROE ii Short-term solvency (QR & CR) To measure the short-term solvency of researchers usually use the current ratio (CR) and quick ratio (QR) Solvency impacts on financial performance in detail: According to Almajali et al (2012), Maleya and Muturi (2013), the solvency relationship the same way with financial performance But conversely, Khalifa and Zurina (2013) indicate solvency opposite impact on financial performance So the research hypothesis pair is given as: H01: Short-term solvency does not affect financial performance H11: Short-term solvency financial performance affects 10 | P a g e 0 Tieu luan iii Degree of Financial Leverage (DFL) Degree of Financial Leverage refers to the use of debt in the capital structure of the company The Degree of Financial Leverage is one of the important decisions of financial managers because it is a double-edged sword and affects the benefits and risks of the owner as well as the market value of the company Besides, many researchers consider the impact of the degree of financial leverage on financial performance in detail: Ghosh, Nag and Sirmans (2000), Berger and di Patti (2006) in his study had indicated the degree of financial leverage has a positive impact on financial performance, but on the contrary, Gleason et al (2000), Simerly and Li (2000), Maleya and Muturi (2013) in his study again indicates the negative impact of the degree of financial leverage to financial performance The hypothesis is given as: H02: Degree of financial leverage has no impact on financial performance H12: Degree of financial leverage has an impact on financial performance iv The size of the company (SIZE) Company size has measured the size of total assets Enterprise-scale is one of the first criteria to the company affirmed its position in the sector and attract investments of investors Ammar et al (2003), Amato and Burson (2007), Liargovas and Skandalis (2008), Lee (2009), Amalendu (2010), Almajali, et al (2012) showed the impact of firm size and efficiency finance These studies present conflicting views on the relationship between size and financial performance However, the opposite view that the scale has a relationship inversely to the financial performance due to some problems with corruption and several other reasons: operating inefficiencies due to poor control The hypothesis is given as: H03: Company size does not affect financial performance H13: Company size has an impact on financial performance v Business cycle (BS) A company's business is the period from when a company buys goods to when the company sells goods and collects money The company's business cycle shorter, shorten the turnaround time and inventory turnaround time, the accounts receivable increasing financial performance The main reason due to goods sold faster, less storage time, increasing sales, reducing costs of inventory investment Moreover, trade receivables faster turnaround, the company recover the debt faster, increasing capital turnover, reduce costs related to accounts receivable The dual impact of the shortened business cycles increases profitability So the hypothesis is given as: H04: Business cycle has no impact on financial performance H14: Business has an impact on financial performance 11 | P a g e 0 Tieu luan vi State capital ratio (STATE) The state capital ratio is measured by the percentage of state capital in total equity The joint-stock company listed on the stock market and have long years of operation of most of the large-scale capital mainly been equitized So the hypothesis is given as: H05: The ratio of state capital has no impact on financial performance H15: The ratio of state capital has an impact on financial performance vii Management competence index (MC) According to Timmons (1994), successful companies have a significant contribution to the skills and creativity of managers Bird (1995) also pointed out that the capacity to manage a strong impact on the financial performance and operational efficiency of the company These successful companies are those companies that have managers capable of "core" - the ability to combine the knowledge, experience, expertise, and skills to the executive management team to achieve the objectives of Co (Coyne, Hall and Clifford, 1997) According to MaMerikas et al (2006), “professionals” are managers who meet the following two criteria: (1) Have a university degree and (2) Direct management or be part of the management team (management team) According to Liargovas and Skandalis (2008), a company has a management team when it satisfies at least three of the following five conditions: (1) The average managerial experience is 20 years, (2 The management group holds an average of 34% of the company shares, (3) Most managers in the university graduate group (4) Average age of managers in the group from 50 to 60 years old, ( 5) All managers in the group undertake innovation activities - an innovation that refers to the introduction of new products, new production technologies, new market developments or reforms of organizational structure function in the company The hypothesis is given: H07: Management competence index has no impact on financial performance H17: Management competence index has an impact on financial performance RESEARCH RESULTS a Descriptive statistics In Table 1, the Descriptive Statistics provide data minimum, maximum and average, the standard deviation of the independent variables and the dependent variable of 22 companies share industry information technology on the Stock Exchange in the period 2007 to 2018, with observation is 80 production and business cycle (BS), an average of about 309 days The short-term solvency of the company average (CR) is about 2.79 times Degree of financial leverage (DFL) average 0.42 times The ratio of management capacity (MC) averaged about 1,261 billion VND Quick ratio averaging time is 2:04 Rate of Return on total assets (ROA) 3.8% average in 12 years and the profitability ratio on average equity 7.2% The average 12 | P a g e 0 Tieu luan company size (SIZE) is about 552,354 billion VND The proportion of state ownership (STATE) average about 12.5% b Check correlation In Table 2, the variables include the production and business cycles (BS), ratio management capacity (MC) have a significant impact on the financial performance ROA MC impact the same way with financial efficiency, while BS opposite impact financial performance 13 | P a g e 0 Tieu luan BS CR DFL MC QR ROA ROE SIZE STATE Table Descriptive Statistics variables Mean Minimum Maximum Std Deviation Observation 308.275 47.647 1243.352 212.482 80 2.790 1.148 25.688 3.303 80 0.424 0.007 0.861 0.221 80 1.261 -5.838 9.037 2.233 80 2.038 0.512 17.425 2.526 80 0.038 -0.121 0.193 0.056 80 0.072 -0.309 0.324 0.099 80 552.354 70.336 2983.032 688.897 80 0.125 0.590 0.155 80 Table Matrix correlation between ROA and the independent variables ROA Correlation Probability BS -0.388 0.000 CR QR 0.279 0.234 0.012 0.036 DFL -0.274 0.013 MC SIZE STATE 0.518 -0.013 -0.293 0.000 0.907 0.008 14 | P a g e 0 Tieu luan multi-collinear when the VIF ratio greater than 10 In Table 4, the coefficient of variation from 1,165 VIF to 4114 to model the phenomenon of no multi-collinearity between the independent variables c Test of the standard distribution To estimate the linear regression to consider the variables have normal distribution or not Initially, when examining several variables such as DFL, SIZE, MC, BS, QR are not e Check autocorrelation normally distributed variables so the To examine the serious autocorrelation group moved into the natural logarithm often used at the Durbin-Watson test, if function After using this method, it is the coefficient of Durbin-Waston in the almost all the variables was transformed region from to there will be no selfinto a normal distribution with the data correlation phenomenon Through in Table is located Durbin-Watson test data on Eview8 Table Check the normal distribution STATE Skewnes s Kurtosis 1.030 CR LNDFL ROA LNSIZE LNMC LNBS LNQR 5.218 -1.998 1.302 0.779 3.261 32.637 LNBS 8.853 3.656 3.233 LNQR LNMC LNDFL d Multi-collinearity test Regression analysis to correlate the first group will examine the phenomenon of multi-collinear with expertise Collinearity Statistics The independent variables will have the phenomenon of -0.433 -0.428 2.801 1.771 2.497 7.282 LNSIZE VARIABLES HAVE CONVERTED TO NATURAL LOGA FUNCTION software with D = 1.582 (Table 5), the model has no autocorrelation phenomenon Table Verification of multi-collinearity phenomenon VIF STATE 1.165 CR LNDFL LNSIZE LNMC 3.552 2.729 1.866 2.893 0 Tieu luan LNBS 2.037 LNQR 15 | P a g e 4.114 Table Test of Anova and Durbin-Watson R-squared Adjusted R-squared S.E of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) 0.763673 0.736554 0.024897 0.037812 161.1615 28.15958 0.000000 f Multiple Regression i Inspection of the suitability of the model ROA We have R-Square = 0.763 (Table 5) is the mean of independent variables was 76.3% which explains the change of financial performance Besides, through accreditation A-nova on the appropriateness of the model and may find this model perfectly suited to consider the impact of the independent variables to effectively finance at (Pvalue = 4.72%