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1 MỞ ĐẦU The need for research Firstly, asset investment is very important for the continuous and sustainable development process of businesses, so it needs careful research and careful decision-making Assets investment of enterprises are often strategic decisions, the process of assets investment will require a large amount of capital with a high level of risk, so it cannot be overlooked Secondly, in recent years, the SMEs in the Northwest subregion have continually invested in increasing the size of their assets but the average business efficiency has been declining, which raises concerns about rationality of investment activities On that basis, clarifying the factors affecting asset investment will really help managers in general and SMEs in the Northwest subregion in particular to properly perform the tasks of corporate finance management At the same time, it is the basis for the State to issue appropriate policies, support enterprises to invest assets according to their wishes and achieve the set goals Thirdly, although the researches on factors affecting enterprises' investment have been mentioned by many domestic and foreign researchers, there are still "gaps" that need to be further added and clarified Very few specific studies have considered the impact of qualitative factors on firm's asset investment In particular, no studies have considered the impact of local socio-cultural development factors, access to loans and internal control in enterprises There are no in-depth studies on the assets investment of SMEs At the same time, the study also used a combination of both quantitative and qualitative methods based on both primary and secondary data sets Fourth, the research results of the SME group in the Northwest subregion will enrich the findings of the SME group in Vietnam in general and in regions with similar difficulties to the Northwest in particular, contribute to developing this group of enterprises A new study on SME investment assets will enrich the research results have on this company group With specific geographic location, the research results in the Northwest subregion will be of reference value and application to both the Northern Uplands, as well as some difficult provinces / regions From the reasons mentioned above, the topic: "Studying the factors affecting the assets investment small and medium-sized enterprises in the Northwest sub-region" was selected for research Objectives of the research The overall objective of the study is to identify the factors affecting the asset investment of SMEs in the Northwest subregion On that basis, specific objectives include: (1) Learn about the theoretical basis and overview of research on asset investment, factors affecting the company's asset investment (2) Understanding the real situation of assets, asset investment of SMEs in the Northwest subregion (3) Identify the factors affecting the asset investment of SMEs in the Northwest subregion through testing econometric models (4) Propose appropriate recommendations based on research results Research questions Research questions include: (1) In the context of Vietnam's economy and the characteristics of the Northwest subregion, are there any hypotheses and research models to study the factors affecting SMEs' asset investment? (2) In this context, which factors affect the investment of SMEs' assets, the dimensions and level of impact of the factors found? (3) What recommendations research results provide? Objects and scope of research - Object of the study: The object of the research is the factors affecting the investment of assets of SMEs, in which asset investment is approached in two aspects: investment scale and selection of yes / Do not invest in assets The factors tested include both quantitative and qualitative factors - Research scope: Research period: Secondary data for the study were collected from 2014 to 2017 Primary data were collected from April to July 2018 Research space: SMEs in the Northwest subregion include provinces: Son La, Dien Bien, Lai Chau and Hoa Binh Research methodology The author mainly uses quantitative research methods based on both primary and secondary data sets to determine the relationship between factors to asset investment of enterprises by the techniques of Cronbach's Alpha, EFA, multivariate regression with evidence that the experimental results are highly reliable and convincing In addition, the research results of the thesis are determined based on both primary and secondary data sets, especially the scales / indicators are built based on the research overview and the real situation of localities, there is a correction after consulting experts and business managers New contributions of research 6.1 Contributtion in theory and research methods Firstly, research on a topic that is rarely mentioned in the world and is relatively new in Vietnam at doctoral level Previously, researchers have pointed out some factors affecting the overall investment of enterprises, but the test results on the influence of some factors are not consistent, specific studies about the factors affecting the assets investment of enterprises are still very limited According to the review of the thesis’s author, previous researchers mainly mentioned the influence of quantitative factors and very few studies have considered the impact of qualitative factors Therefore, the research results will contribute to enriching the theoretical basis of factors affecting the enterprises's asset investment Second, this is the first time that a group of qualitative variables include: infrastructure, technology, local preferential policies, local socio-cultural development, markets, ability to access loans of businesses and especially the internal control factor in the enterprise is proven to affect the asset investment of the enterprise, in the case of SMEs in the Northwest subregion On that basis, the research’s result about these factors will contribute to more complete theory Importantly, the research results provide the basis for state agencies to issue regional development policies that are consistent with the unique characteristics of the Northwest subregion - an area with a strategic position about national security and defense, but it is the region with the lowest level of socio-economic development in the country Third, measuring the qualitative factors in the financial economy is not really popular, especially the measurement of qualitative factors in the enterprises environment affecting the assets investment of enterprises is very new Moreover, factors of internal control is often less studied because of difficulties in collecting internal information in enterprises, especially in Vietnam Therefore, building a set of scales with indicators measuring the impact of internal control factors on the enterprises's asset investment is really meaningful Fourthly, the thesis combines both qualitative and quantitative research methods, so asset investment of enterprises is considered more comprehensively, increasing the persuasiveness and rationality of research results Thereby, the thesis will encourage researchers to interested in using modern analysis methods and tools to develop research in the field of investment of enterprises 6.2 Practicial contribution Firstly, enterprises managers will have a better understanding of the factors affecting the enterprises's asset investment, which is the basis for making asset investment decisions more effective, make plan and enterprises strategies for businesses more reasonable Not only that, the study discovered the inadequacies in asset investment of SMEs in the Northwest subregion based on scientific and reliable evidence By verifying both quantitative and qualitative factors, based on primary and secondary data sets, the thesis has reasonably and satisfactorily explained about the situation of excessive asset investment while asset efficiency is reduced in SMEs in the Northwest subregion The scientific evidence shows that these enterprises have invested based on the advantages of external conditions and factors in the business environment but they are less interested in the profitability of assets and overlooked internal control in enterprises These issues have never been mentioned and considered in the reports and review summaries of enterprise management agencies Facing this situation, managers will have an overview of these activities, thereby drawing lessons as well as experiences in the process of asset investment, avoiding the situation of enterprises investing in assets too little or too much without effectiveness in future Secondly, policy -makers as well as regulatory agencies in general and the Northwest subregion in particular will also understand better about the factors impacting on asset investment of enterprises, from there, they formulate strategies, make plans, orientations and preferential policies appropriately to attract investment, creating favorable conditions for businesses to invest effectively and sustainably 3 CHAPTER OVERVIEW OF RESEARCH AND THEORETICAL BASIS OF FACTORS AFFECTING ASSETS INVESTMENT OF ENTERPRISES 1.1 Overview of factors affecting the assets investment of enterprises 1.1.1 The studies on the world about factors affecting asset investment of enterprises * The effect of the revenue factor Eisner (1960) demonstrated that if firms have high revenue growth, they tend to invest less Fama (1974) and Erkaningrum (2013) have argued that revenue growth has a positive effect on investment of enterprises * Influence of equity factor Budina et al (2000) suggested that firm investment would be limited by the availability of equity Gelos and Werner (2002) * Effect of debt factor Baskin (1989) has argued that high dividend rates make enterprises reduce investment in the future Allen (1993), Aivazian, Ge and Qiu (2005); Noravesh and Yazdani (2010) confirm that debt size has an opposite effect on investment, contradicts Baneijee's research (2010) * Profitability factor Research results of Baskin (1989), Abel and Eberly (1994), Erkaningrum (2013) have shown that profitability is positively correlated with investment of enterprises * Effect of ability to access loans factor Vladimir et al (2003), Nhung Nguyen et al (2013) showed that the growth of enterprises decreased when there are institutional and financial barriers * Influence of internal control factor Richardson (2006) has affirmed that a certain control mechanism can limit excessive investment in enterprises Agrawal et al (1996) Core et al (1999) stated that the more strict the internal control, the more limited representation costs, leading to overinvestment of enterprises * Influence of factors: infrastructure, technology and social culture Amado (1989) emphasized the development of infrastructure as a factor to attract investors Galan et al (2007) argued that infrastructure and technology factors have a positive relationship in the choice of investment positions of multinational companies At the same time, these authors also believed that the cultural and social factors have a positive relationship to the investment of enterprises * Influence of local factor (institutional and preferential policies) Sachs and Wanrner (1995), Barro and Salai-martin (1997) have pointed out that the quality of institutions is positively related to investment Amado (1989), Dunning (1997) and Kotler (2002) have affirmed the role of preferential policies for investment - In terms of content, there are very few studies that have shown the influence level of factors on the company's asset investment Previous research only mentioned investment decisions or general investment of enterprises, the results of verification were not consistent * Influence of market factor 1.2.2 Concept of asset investment in the enterprises Dunning (1980); Kravis and Lipsey (1982); Tatoglu and Glaister (1998), Galan et al (2007) have affirmed that the market is one of the important factors in determining the investment position of multinational companies Starting from the view of Bernard Guerien (2007) on investment and the views of Renata and Zuzana (2015) on assets, combined with the view of Sachs and Larrain (1993), asset investment of enterprises is understood as sacrificing resources in the present to increase the scale of assets to serve the production and business process to bring economic benefits in the future 1.1.2 Research in Vietnam on factors affecting firm's asset investment * Influence of factors related to firm's characteristics (turnover, equity, debt leverage, profitability, ability to access loans, internal control) Le Khuong Ninh et al (2008) affirmed that revenue growth has a positive effect on enterprises 's investment, but Le Bao Lam and Le Van Huong (2010) have argued that revenue has a negative impact on investment of enterprise Le Bao Lam and Le Van Huong (2010) have shown that the equity variable decreases when the size of enterprises increases Le Khuong Ninh et al (2008) stated that debt is proportional to enterprises's investment Le Bao Lam and Le Van Huong (2010) have shown that profitability is positively correlated with enterprises’s investment Nguyen Phi Lan (2006), Le Thi Lan (2017), Le Hoang Ba Huyen (2012) once thought that there was a negative relationship between input costs and investment of enterprises * Influence of outside enterprises factors (technology infrastructure, socio-culture, institutions, local policies, markets) Nguyen Phi Lan (2006), Le Hoang Ba Huyen (2010) concluded that infrastructure and technology factors have a positive relationship in the choice of investment location of multinational companies Le Hoang Ba Huyen (2012) and Le Thi Lan (2017) have shown that preferential policies are positively related to investment decisions of enterprises in Thanh Hoa province Nguyen Phi Lan (2006), Le Hoang Ba Huyen (2012) pointed out the positive relationship between market factors and FDI capital of enterprises 1.1.3 Research gaps - Regarding the scale, measuring the impact of qualitative factors in the business environment on enterprise investment is relatively new Previously, internal control factors were rarely mentioned, therefore, a study measuring internal control factors in enterprises would enrich both theory and practice - Regarding research samples, the old authors focus on researching state-owned / non-state enterprises, listed / unlisted enterprises or industry-specific enterprises, without in-depth research on asset investment of SME Research results of SMEs will enrich the theory - Regarding research methods, the combination of qualitative and quantitative research methods, combination of primary and secondary datas will enrich the research methods in the field of enterprise’s investment 1.2 Theoretical basis of asset investment and factors affecting the asset investment of enterprises 1.2.1 Theories related to asset investment of enterprises 1.2.1.1 Financial management theory Brigham and Houston (2009) once considered investment decisions to be one of financial management's decisions Investment decisions are decisions related to the total value of assets, the value of asset parts and the balanced relationship between the parts of asset in the enterprise 1.2.1.2 Eclectic theory Dunning (1997) mentioned the advantages of the region mainly including external environmental factors of enterprises It is really necessary to consider the impact of external environmental factors on the assets investment of enterprises 1.2.1.3 Local marketing theory (regional marketing) Kotler (2002) asserted that the development of localities in the future will depend on the expertise, contribution skills, quality of people and organizations in the locality Each locality will have its own plans and strategies to create different characteristics 1.2.1.4 Agency theory In fact, many shareholders who own the majority of enterprises' shares act for individual benefits (Armor et al., 2009) Firms with weak governance structures face the theory of more representative costs and managers of those firms may gain more individual benefits (Core et al., 1999) In 1976, Jensen and Meckling once pointed out that the presence and representation of owners can prevent the optimal decision making of private enterprises (Holmstrom, 1989) 1.2.3 Theoretical basis of factors affecting enterprise's asset investment 1.2.2.1 Quantitative factors - Revenue: Revenue often has a positive impact on the investment activities of enterprises (Le Khuong Ninh et al, 2008; Erkaningrum, 2013), enterprises may also have to reduce investment when sales fall ( Fama, 1974) - Equity: For small-sized enterprises, investment activities are often influenced by equity (Gelos and Werner, 2002; Budina et al., 2000) - Liabilities: Investment of enterprises is often governed by the size of debts in enterprises (Allen, 1993; Aivazian, Ge and Qiu, 2005; Noravesh and Yazdani, 2010) - Profitability: For small and medium-sized enterprises, a enterprise with high profitability will be able to invest more (Baskin, 1989) Therefore, the higher the profitability of assets or from production and business activities, the more enterprises invest (Erkaningrum, 2013) 1.2.2.2 Qualitative factors - Infrastructure and technology of the economy: An economy with developed infrastructure and technology can help enterprises save costs - Local institutions: Quality of institutional is related to firm investment (Sachs and Wanrner, 1995) - Local preferential policies: Incentive policies play an important role in investment activities (Amado, 1989; Dunning, 1997; Kotler, 2002) 5 - Culture - Society: It shows the social attitude and value of culture, is one of the factors of the business environment that affect investment of enterprises CHAPTER REAL SITUATION OF ASSET INVESTMENT OF SMALL AND MEDIUM ENTERPRISES IN THE WEST NORTH - Market: The cooperation of suppliers, the availability of labor force are the decisive factors to the effectiveness of the enterprise's investment activities 2.1 General characteristics of economy - society and small and medium enterprises in the Northwest subregion - Ability to access loans: If the loan barriers are large, low access to loans may cause enterprises to lose investment opportunities - Internal control of enterprises: By intensifying supervision of activities, enterprises can limit agency costs and control investment activities (Agrawal et al., 1996) 2.1.1 General characteristics of economy - society in the Northwest subregion * Population and education level In 2017, there was more than 21.825% of the population aged 15 and older that was illiterate, which is the highest area compared to other localities in the country, showing that the cultural level of the population in the region is the lowest * Local economic characteristics The socio-economic situation in the Northwest region has been assessed as stable in recent years In general, the Northwest is considered as a low starting area Although it is rich in natural resources, it is difficult to exploit, lack of capital, outdated technology and inadequate human resources, resulting in very low economic efficiency (Khanh, 2016) 2.1.2 Characteristics of SMEs in the Northwest subregion * About the quantity In 2017, the total number of SMEs in the Northwest sub-region was about 3,965 enterprises The number of SMEs in Hoa Binh is greater than in other provinces, the number of SMEs in Lai Chau is the lowest in the region * Structure by Industry business The number of SMEs operating in agriculture, forestry and fisheries is very small (7.8% of the total SME in the Northwest region) Most enterprises focus on industries and construction or trade and services * Structure of business results Of the total 3,965 SMEs in the Northwestern region, only 2,445 enterprises operating in production and business had profits, accounting for 61.67% of the total number of SMEs in the whole region, while the number of SMEs making losses amounted to 1,001 enterprises accounting for 25.24% 2.2 Situation of investing in assets of small and medium-sized enterprises in the Northwest sub-region * The situation of asset investment of SMEs in the Northwest region over the years Although the number of enterprises increasing asset investment over the years is less, but in general, the majority of SMEs in the Northwestern region tend to invest more assets over the years Although most businesses increase their scale of asset investment, there are fewer and fewer businesses investing in long-term assets and the majority of businesses tend to use less long-term assets or not change the structure of their asset type * Assets investment situation of SMEs in the Northwest subregion classified by enterprise size The average total assets or capital of medium-sized enterprises is 4.97 times higher, the average size of liabilities is 6.06 times higher than small-sized enterprises The debt ratio of medium-sized enterprises is higher than that of small-sized enterprises, suggesting that the medium-sized enterprises have a higher debt utilization rate The indicators reflecting ROA and ROE of both groups of enterprises decreased over the years, in which, ROE dropped the most This proves that the business efficiency of enterprises is also declining, profitability of equity and assets are reduced In addition, the efficiency of using assets of both groups of enterprises also decreases over time, but medium-sized enterprises are more efficient than small-sized enterprises * Assets investment situation of SMEs in the Northwest subregion classified by type of enterprise In general, the efficiency of using assets of all types of enterprises has been in the downtrend over time In particular, the efficiency of the use of assets in limited liability companies is still the highest while private enterprises have the lowest efficiency * Assets investment situation of SMEs in the Northwest sub-region classified by business activities The number of enterprises in agriculture, forestry and fishery is the least (only 7.8% of the number of enterprises surveyed) but the average size of enterprises is not too small (an average of 1.33 times the size of enterprises in the Trade and service sector) and also tend to increase in recent years with an average growth rate during the period of 2014-2017 is 11.6% In particular, the size of long-term assets in enterprises in this industry is the largest, showing that businesses in agriculture, aorestry and fisheries invest more long-term assets than enterprises in other industries The number of enterprises in industry and construction sector is very large, accounting for 53.5% of enterprises studied, the average size of enterprises in this industry is the largest and has been increasing in recent years but the average growth rate in the whole period was only 9.59%, which is slower than other types of enterprises 7 Effective use of the asset of enterprises in agriculture, forestry and fisheries, and trade and service sectors has decreased over time, particularly enterprises in industrial and construction have decreased sharply in 2015 and slightly increased in lately year Effective use of the asset of enterprises in Trade and Services sectors is always higher than enterprises in other industries Meanwhile, Effective use of the asset of enterprises in industry and construction enterprises is not stable over time and always lower than other enterprises in other industries * Some other statistical results Statistical results show that the majority of SMEs in the Northwest subregion have a high demand for expanding the scale, which also means that the demand for asset investment in enterprises is very large It is shown that, every year, over 61% of enterprises increase their scale of asset investment Particularly in 2015, it was the time when the economy was recovering from the impact of the global financial crisis, so the number of enterprises increased in size, accounting for 69.5% of the total number of enterprises studied Although the number of these enterprises have declined in recent years but still high proportion That is not to mention businesses with increasing demand scale but not able to meet the demand In addition, in 2015, more than 57% of enterprises increased debt ratio and this ratio was always above 50% over the years, which shows that most enterprises have increased the size of liabilities and annual debt ratio Combined with statistical results of other criteria, it can be affirmed that small and medium enterprises in the Northwest subregion tend to use more debt to invest in assets CHAPTER RESEARCH METHODS 3.1 Research questions and research hypotheses 3.1.1 Research questions Based on the real estate investment of SMEs in the Northwest subregion, the management question to clarify is: "Why are SMEs in the Northwest subregion continually investing to increase asset size over time while profitability of assets is tending to decline?" Accordingly, the thesis identifies research questions as presented in the introduction 3.1.2 Research hypothesis The study will test the following hypotheses: Hypothesis (H1.1): Equity capital of enterprises has a positive impact on the assets investment of enterprises Hypothesis (H1.2): Revenue has a positive impact on the assets investment of enterprises Hypothesis (H1.3): The debt ratio has a positive impact on the asset investment of the enterprise Hypothesis (H1.4): Profitability has a positive impact on asset investment of enterprises Hypothesis (H2.1): Infrastructure, technology and institutions have a positive impact on asset investment of enterprises Hypothesis (H2.2): Local preferential policies have a positive impact on the assets investment of enterprises Hypothesis (H2.3): Local culture - society has a positive impact on the assets investment of enterprises Hypothesis (H2.4): The market has a positive impact on asset investment of enterprises Hypothesis (H2.5): The ability to access loans has a positive impact on asset investment of enterprises Hypothesis 10 (H2.6): Internal control of enterprises has a negative effect on the assets investment of the enterprises 3.2 Model framework and research design 3.2.1 Research model framework The author proposes a model framework to verify the quantitative factors affecting the enterprise's asset investment: Invest in assets Quantitative factor: - Equity - Revenue - Debt ratio - Profitability - ROA Panel data regression (Increase / decrease in scale of asset investment) Figure 3.1 The model framework proposes quantitative factors affecting enterprise's asset investment (Source: Authors' research) From research overview, the author also found that there are very few studies examining the relationship between qualitative factors and firm's asset investment, so this may also be a gap to be studied Therefore, the author proposes a framework for researching the qualitative factors described in Figure 3.2 The qualitative factors groups: - Infrastructure, technology and institutions - Local preferential policies - Culture - Society of the locality - Market - Ability to access loans - Internal control EFA Qualitative factor Regress Invest in assets (yes / no invest) Binary Figure 3.2 The model framework proposes qualitative factors affecting enterprise's asset investment (Source: Authors' research) 3.2.2 Research design - Systematize theoretical basis and overview of factors affecting the company's asset investment through research techniques at the table - Find out the situation, build and complete the scale / indicator after consulting with experts and business managers in the area - Verify the impact of quantitative factors (financial factors) 9 - Verify the impact of qualitative factors 10 - Based on the research results, propose recommendations The thesis examines the correlation; test the conformity of models: OLS, FEM and REM; test the model's defects (multi-collinear phenomena, variance of variation errors and chain correlation) 3.3 Research model 3.4.2 Data and data collection methods study the qualitative factors 3.3.1 Research model for quantitative factors 3.4.2.1 Source and method of data collection The research model has the form: Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + ε In which: Y: Total Assets (natural log) (Asset); X1: Ratio of Equity to Total Assets (Equity); X2: Revenue (natural log) (Sale); X3: Debt ratio (Ratio of Liabilities / Total assets) (Debtratio); X4: Profitability ROA (Ratio of Profit after tax / Total assets) 3.3.2 Research model of qualitative factors The research model has the form: Y =β0 + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + β6X6 + ε In which: Y: The dependent variable of the enterprise's asset investment, receiving the value of or 0; X1: Infrastructure, technology and institution factor (TC); X2: Local preferential policy factor (CS); X3: Cultural and social of the locality factors (VH); X4: Market Factor (TT); X5: Ability to Access loan factor (VV); X6: Internal control factor (KS) a Group of factors on infrastructure, technology and institutions This group of factors includes a scale that reflects both infrastructure and technology factors developed from the questionnaire in the research of Galan et al (2007), Tatoglu et al (1998), Loree et al (1995), Le Thi Lan (2017) Local institutional issues are developed from the scales of Salai-martin (1997), Sachs and Wanrner (1995), Dinh Phi Ho (2012) The author received the help of Son La and Hoa Binh Association of Enterprises, Lai Chau Young Enterprise Association, Statistical Office of Dien Bien Province, the survey was conducted from 4/2018 to 6/2018 The number of satisfactory questionnaires collected was 370 3.4.2.2 The size of the research sample According to Hair et al (2006), the minimum sample size is: 32 * = 160 observations In addition, according to the formula to determine the sample size of Nguyen Thi Tuyet Mai and Nguyen Vu Hung (2015) above, the minimum sample size is 350 observations The study surveyed with 700 questionnaires 3.4.2.3 Characteristics of research samples The number of private enterprises and limited liability companies accounts for the majority of the sample, focusing on industry and construction, the number of enterprises in agriculture, forestry and fishery is very limited 3.5 Data processing technology 3.5.1 Data processing technique of quantitative factor research model The thesis has described statistics, examines the correlation, multi-collinear, test the conformity of models: OLS, FEM and REM, examine the model's defects (variance of variance of changes and chain correlation) b Group of factors on local preferential policies 3.5.2 Data processing technique of qualitative factors research model Inheriting the scale in the research of Ulgado (1996), Tatoglu (1998), Yongqiang Gao (2011) In addition, based on the current situation of investment promotion in localities, the author adds two new scales: state / local support in terms of access to ground and taxes 3.5.2.1 Techniques for assessing reliability of scales and discovering factor analysis c Group of factors about Culture - Society of the locality 3.5.2.2 Binary logistic regression technique The author identified these factors based on the scale used in the study of Galan et al (2007), Hofstede (1980) Based on the customs, practices and living situation of ethnic minorities in the Northwest subregion, the thesis adds a scale of customs and habits of the people The author tested the significance of the regression coefficients by Wald test and Test the suitability of the model by Chi-squared test with the observed significance level given in the Omnibus Test of Model Coefficients table d Group of market factors This group of factors was developed based on the scales of Zhou et al (2002), Shane et al (1994) and the scales to measure the inputs factor of enterprises of Dunning (1998), Tatoglu et al (1998) and Galan (2007) e Group of factors on loan accessibility Based on the scale of the financial barriers for enterprises of Wit (1996) and the ability to access loans of Kochar (1997), Stiglitz and Weiss (1981), Bigsten et al (2003), the author developed the scale to measure group of factors of enterprises' ability to access loans f Group of factors for internal control The group of internal control factors was developed based on the scale of Orapan Khongmalai et al (2010), Mohd Hassan et al (2008), Holmstrom (1989); Quttainah et al (2013); Hasan and Song (2014) on corporate governance 3.4 Data and data collection methods 3.4.1 Data and data collection methods study the quantitative factors 3.4.1.1 Source and how to collect data Quantitative data was collected from 2014 to 2017 at the Statistical Office in Son La, Dien Bien and Hoa Binh province Data of enterprises in Lai Chau province is collected in the Tax Department of Lai Chau province 3.4.1.2 The size of the research sample The author selected SMEs in provinces: Dien Bien, Hoa Binh, Son La and Lai Chau to study According to the formula for calculating the sample size of Nguyen Thi Tuyet Mai and Nguyen Vu Hung (2015), the sample size for the study is 350 observations The study collected data of 564 enterprises 3.4.1.3 Characteristics of research sample The statistical results show that the number of small-sized enterprises is the majority (69.32%), enterprises are organized under two types: private enterprises and limited liability companies Basically, the model's sample characteristics ensure the similarity with the overall study 3.4.1.4 Information processing The author assesses the reliability of the scale, explore factor analysis and Binary logistic regression From there, perfecting the set of scales ensures both convergent and discriminant values 11 12 4.1 Research results on quantitative factors affecting the asset investment of SMEs in the Northwestern region The results of the 1st Cronbach's Alpha test showed that indicators need to be removed After removing indicators, the scale set with groups of factors with 26 indicators was retested, the results of the second Cronbach's Alpha test showed that the scales were standard, eligible for use in explore factor analysis EFA 4.1.1 Descriptive statistics results 4.2.1.2 EFA discovery factor analysis CHAPTER RESEARCH RESULTS The analysis results show that KMO coefficients and Barlett tests are satisfactory, the indicators in the model converge on factors The results of the Varimax rotation factor matrix show that no indicators are removed Descriptive statistical results are presented in Table 4.1 4.1.2 Correlation analysis results The analysis results show that the independent variables in the model have low correlation coefficients so it is less likely to have multiple collinearity 4.1.3 Multicollinearity test results Testing results show that the model does not violate defects in multi-collinear phenomenon 4.1.4 Test results to select an appropriate model * Estimates with Pooled OLS: The estimation results show that the OLS estimates may be an appropriate estimate * Compare Pooled OLS with REM: Test results show that Prob> chibar2 = 0.000