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http://dx.doi.org/10.13106/jafeb.2022.vol9.no9.0093

Factors Affecting the Development of Vietnamese Construction and Real Estate Companies  

PHAN, Giang Lam (School of Business and Management, RMIT University)
NGUYEN, Thuy Dieu (School of Advanced Education Programs, National Economics University)
NGUYEN, Chi Thi (School of Advanced Education Programs, National Economics University)
NGUYEN, Lan (Faculty of Accounting and Auditing, Van Lang University)
TRAN, Le Thi (School of Trade and International Economics, National Economics University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.9, no.9, 2022 , pp. 93-104 More about this Journal
Abstract
This study aims to investigate the factors that contribute to the sustainable development of 334 Vietnamese construction and real estate companies listed on the Stock Exchange of Vietnam over a 5-year period from 2016 to 2020. By using regression analysis with the support of STATA software through examining the financial statements, which involves looking into crucial ratios including capital structure, profitability, firm size, accounts receivable management, and tangible assets investment, this study sheds light on whether these accounting indicators could help predict the construction and real estate companies growing potential in the future. Nevertheless, these ratios slightly contribute to the explanation of the change in revenue growth ratio, with a result of 1.6%, indicating that the value relevance of accounting information provides a modest and insignificant effect on investment decisions. This is understandable because the Vietnamese construction and real estate market still has many shortcomings in handling unexpected events, as well as the industry's peculiarities related to major capital sources from bank loans. Based on this study, governmental authorities and business executives should plan appropriate risk management policies and measures to contribute to the sustainable development of construction and real estate companies.
Keywords
Sustainable Development; Vietnamese Listed Enterprises; Vietnam Stock Exchange;
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Times Cited By KSCI : 5  (Citation Analysis)
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