Finance dissertation on the impact of ganzhi on the business performance of enterprises an evidence from listed vietnamese commercial banks

Dissertation submitted in partial fulfillment of the Requirement for the MSc in Finance FINANCE DISSERTATION ON THE IMPACT OF GANZHI ON THE BUSINESS PERFORMANCE OF ENTERPRISES: AN EVIDENCE FROM LISTED VIETNAMESE COMMERCIAL BANKS PHAM TRAN MINH TUAN ID No: 21071817 Intake Supervisor: Dr PHAM MANH HUNG September 2022 Tai ngay!!! Ban co the xoa dong chu nay!!! 17014126254901000000 ABSTRACT The business performance of the company is one of the most important indicators to evaluate whether the banks are performing well or not Hence, ensuring commercial banks always operate smoothly and effectively is the main priority of any firm Therefore, it is important to identify which factors influence the business performance, and Ganzhi is a factor that has a hidden impact on the performance of the bank that people may not take into consideration due to its abstract nature This study applied the fixed effect model and random effect model with the combination of data from 24 Vietnamese banks from 2011 to 2021 to investigate the impact of Ganzhi on business performance In the end, some recommendations will be made based on the results of the study ACKNOWLEDGEMENTS Firstly, I would like to express my sincere gratitude to my supervisor - Dr Pham Manh Hung for the continuous support of my research and study, for his patience, enthusiasm, and knowledge His guidance helped me in all the time of research and writing of this study This dissertation could not be finish without his continuous support Besides my supervisor, I would like to express my grateful to all the teachers and my friends who have shared helpful information The work of this dissertation could not have been successful without their instructions and assistance Finally, I would like to thank my family who has always encouraged me to complete this dissertation Pham Tran Minh Tuan Table of Contents CHAPTER 1: INTRODUCTION 1.1 Research background 1.2 Research objectives 10 1.3 Research question 10 1.4 New contributions 11 1.5 Research structure 11 CHAPTER 2: LITERATURE REVIEW 12 2.1 Ganzhi and business performance 12 2.1.1 Trio Combination year .15 2.1.2 Quartet Conflict year 17 2.1.3 Zodiac years .18 2.2 Measurement of business performance 21 2.2.1 ROA and ROE 21 2.2.2 Dividend payout 21 2.3 Other determinants that influence the business performance of enterprise 22 2.3.1 Financial leverage (LEV) 22 2.3.2 Size of the firms (SIZE) .22 2.3.3 Revenue growth (GROWTH) 23 2.3.4 Fixed asset investment ratio (TANGI) .23 2.3.5 Enterprise’ age (AGE) 23 2.3.6 Gender (GENDER) 23 2.3.7 Education level (EDU) .24 2.3.8 Experience (EXP) .24 2.3.9 Stock owning percentages (OWNER) 25 CHAPTER 3: METHODOLOGY 26 3.1 Research Data 26 3.2 Model specification 26 3.3 Estimation method 29 CHAPTER 4: FINDINGS AND DISCUSSION 30 4.1 Descriptive statistics 30 Correlation matrix 31 4.2 Diagnostic tests and define regression models 31 4.2.1.Model of CEO’s Trio Combination year with business performance (TRIOCOM_GD) 31 4.2.2 Model of Chairman Trio Combination year with business performance (TRIOCOM_CT) 38 4.2.3 Model of CEO’s Quartet Conflict year with business performance (QUARTET_GD) .45 4.2.4 Model of chairman Quartet Conflict year with business performance (QUARTET_GD) 50 4.2.5 Model of CEO Zodiac year with business performance (ZODIYEAR_GD) .52 4.2.6 Model of Chairman Zodiac year with business performance (ZODIYEAR_CT) 55 4.3 Discussion 59 4.3.1 The impact of CEO in Trio Combination year to the business performance of enterprise 59 4.3.2 The impact of Chairman in Trio Combination year to the business performance of enterprise.61 4.3.3 The impact of CEOs in Quartet Conflict year to the business performance of enterprise 62 4.3.4 The impact of Chairman in Quartet Conflict year to the business performance of enterprise 64 4.3.5 The impact of CEOs in Zodiac year to the business performance of enterprise 66 4.3.6 The impact of Chairman in Zodiac year to the business performance of enterprise 67 CHAPTER 5: RECOMMENDATION AND CONCLUSION 70 REFERENCES 72 APPENDICES 78 LIST OF FIGURES Figure 1: figure of suitable and conflict Earthly branch LIST OF TABLES Table 1: Can Chi’s Heavenly Stem Table 2: Earthly branches of Ganzhi Table 3: Research variables Table 4: Descriptive statistics Table 5: ROA model Table 6: ROE model Table 7: DIVE model Table 8: ROA CT model Table 9: ROE CT model Table 10: DIVE model Table 11: ROA QC model Table 12: ROE QC model Table 13: DIVE_QC model Table 14: ROA QC CT model Table 15: ROE QC CT model Table 16: DIVE QC CT model Table 17: ROA ZD Model Table 18: ROE ZD Model Table 19: DIVE ZD Model Table 20: ROA ZD CT model Table 21: ROE ZD CT Table 22: DIVE ZD CT Model Table 23: CEO in Trio combination year Table 24: Chairman’s Trio combination Table 25: CEO’s Quartet Conflict Table 26: Chairman Quartet Conflict Table 27: CEO’s Zodiac year Table 28: Chairman Zodiac year LIST OF ABBREVIATION QC ZD TC GD CT Quartet Conflict Zodiac Year Trio Combination CEO’s / Directors Chairman CHAPTER 1: INTRODUCTION 1.1 Research background In every firm, the development of leadership is always a necessity Since, they are the people who will act on behalf of the company, the legal authority to exercise the rights and obligations, make important decisions, and draw the path for the company's development orientation Therefore, the leaders decision has a significant relationship, closely related to the business results of the enterprise Specifically, whether it is a short-term or long-term plan The leaders will be responsible for creating the development strategy in the organization, generating investment forms, making decisions on the issuance of bonds, and making crucial appointment decisions for the general director or insider of the firm With such great power, the efficient operation of the leadership system will result in better profits, ensure a stable income for their employees, and create value for society as well as the economy Most importantly, the leaders can have the decision on the growth or survival of the business Because of that importance, the characteristics of the leaders will directly affect the operation of the firm Each leader has a different mindset, personality, and spiritual belief Will the leaders be influenced by spiritual factors in a country that has a long tradition of culture and religion like Vietnam? Will this affect the business results of the business? For many years, spiritual culture has been an abstract topic that is difficult to explain using nowadays science, spiritual factors have also generated the curiosity of many scientists around the world as well as researchers in Vietnam In addition, there have been studies on the influence of spiritual factors on the behavior of the board of directors towards the company around the world According to research conducted by Rong (2020) from studying astrology in China, he reviewed ROA, ROE, Tobin's Q, and market-based performance measures of stock returns to examine whether the negativity in Zodiac results in lower performance of firms led by the manager in their zodiac year Several researchers have documented changes in personal behavior and corporate decisions made by CEOs and chairmen as they face their zodiac year Furthermore, Fisman and his colleagues conduct a study called “superstition and risk-taking: Evidence from Zodiac year investment in China” to examine the personal behavior of the chairman himself Their findings pointed out that there is a significant negative effect on the degree of risky investment, the chairman tended to avoid some investments or business during the year is said to be their conflict This research goes more in depth by confirming that no matter what they try to do, the negative influence of the zodiac sign persists on the company's performance (Fisman et al, 2019) In the process of researching, interesting information was discovered that in Vietnam, there is no evidence or any particular research results related to spirituality applied in socio-economic Moreover, during these years, there have been many research studies on the influence of factors such as gender, qualifications, nationality, etc of the CEO, the chairman of the Board of Directors on the performance results of the business, but there have not been any topics that include the Ganzhi (Can Chi) factor to consider the appropriateness between the CEO's age, the Chairman of the Board of Directors and Can Chi's (Ganzhi) years of business operation In addition, in Vietnam, there is no specific research paper that provides data and combined analysis on the influence of spiritual factors on the CEO and the Chairman This has prompted the researcher to continue the previous research to carry out this new and unique topic in Vietnam to propose solutions to overcome the shortcomings of superstition and develop spiritual factors that have a good impact to maximize profits for the commercial banks in Vietnam 1.2 Research objectives Cultural spirituality or superstition is an abstract subject and challenging to explain just by applying modern science In addition, this topic has stimulated the curiosity of many scientists in the world as well as researchers in Vietnam However, in the process of researching, it is discovered an interesting information that in Vietnam currently, there is no research evidence related to the use of superstition in business performance of enterprise On the other hand, there are few investors still make financial decision based on their belief with superstitious phenomena such as applying lucky number (numerology), Feng shui or zodiac which is often generate unpredictable and often unfavorable results for the investors This has prompted the researcher to continue the study of previous research to carry out and investigate this new and unique topic in Vietnam From there to make recommendation to overcome the negative existence of superstitions and develop helpful spiritual factors to benefits the investors 1.3 Research question In this research, it will focus on clarifying the of influence of Ganzhi on the business performance of enterprise The study will clarify the following question which is the influence of 10