ISSN 2394-5125
 

Research Article 


FACTORS AFFECTING PROFITABILITY OF MANUFACTURING ENTERPRISES IN VIETNAM

Ngo Ngoc Minh, Nguyen Duc Loc.

Abstract
The paper investigates the factors affecting profitability of the manufacturing enterprises in
Vietnam for the period of 2010-2019. The data of 320 manufacturing firms was extracted from Vietnam stock
exchange. The empirical results show that working capital, firm size and firm growth were positively related to
profitability. Meanwhile, capital structure and non-debt tax shield did not affect profitability. The findings were
consistent with the pecking order and the financial agency theories. This implies that managers need to adjust
their investment needs with the profitability that has been achieved and the total assets of the company, and to
maximize the value of the company by managing current assets so that the rate of the return on marginal
investment is equal to or greater than the cost of capital used to finance the current assets.

Key words: Profitability, manufacturing enterprise, Vietnam.


 
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Pubmed Style

Ngo Ngoc Minh, Nguyen Duc Loc. FACTORS AFFECTING PROFITABILITY OF MANUFACTURING ENTERPRISES IN VIETNAM. JCR. 2020; 7(19): 2798-2804. doi:10.31838/jcr.07.19.341


Web Style

Ngo Ngoc Minh, Nguyen Duc Loc. FACTORS AFFECTING PROFITABILITY OF MANUFACTURING ENTERPRISES IN VIETNAM. http://www.jcreview.com/?mno=120716 [Access: September 15, 2020]. doi:10.31838/jcr.07.19.341


AMA (American Medical Association) Style

Ngo Ngoc Minh, Nguyen Duc Loc. FACTORS AFFECTING PROFITABILITY OF MANUFACTURING ENTERPRISES IN VIETNAM. JCR. 2020; 7(19): 2798-2804. doi:10.31838/jcr.07.19.341



Vancouver/ICMJE Style

Ngo Ngoc Minh, Nguyen Duc Loc. FACTORS AFFECTING PROFITABILITY OF MANUFACTURING ENTERPRISES IN VIETNAM. JCR. (2020), [cited September 15, 2020]; 7(19): 2798-2804. doi:10.31838/jcr.07.19.341



Harvard Style

Ngo Ngoc Minh, Nguyen Duc Loc (2020) FACTORS AFFECTING PROFITABILITY OF MANUFACTURING ENTERPRISES IN VIETNAM. JCR, 7 (19), 2798-2804. doi:10.31838/jcr.07.19.341



Turabian Style

Ngo Ngoc Minh, Nguyen Duc Loc. 2020. FACTORS AFFECTING PROFITABILITY OF MANUFACTURING ENTERPRISES IN VIETNAM. Journal of Critical Reviews, 7 (19), 2798-2804. doi:10.31838/jcr.07.19.341



Chicago Style

Ngo Ngoc Minh, Nguyen Duc Loc. "FACTORS AFFECTING PROFITABILITY OF MANUFACTURING ENTERPRISES IN VIETNAM." Journal of Critical Reviews 7 (2020), 2798-2804. doi:10.31838/jcr.07.19.341



MLA (The Modern Language Association) Style

Ngo Ngoc Minh, Nguyen Duc Loc. "FACTORS AFFECTING PROFITABILITY OF MANUFACTURING ENTERPRISES IN VIETNAM." Journal of Critical Reviews 7.19 (2020), 2798-2804. Print. doi:10.31838/jcr.07.19.341



APA (American Psychological Association) Style

Ngo Ngoc Minh, Nguyen Duc Loc (2020) FACTORS AFFECTING PROFITABILITY OF MANUFACTURING ENTERPRISES IN VIETNAM. Journal of Critical Reviews, 7 (19), 2798-2804. doi:10.31838/jcr.07.19.341