Volume 10, Issue 12 (December 2023), Pages: 73-78
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Original Research Paper
Optimizing profitability through capital structure: An empirical analysis of Vietnamese commercial banks
Author(s):
Huong Le Thi Mai *
Affiliation(s):
Faculty of Economics, HCMC University of Technology and Education, Ho Chi Minh City, Vietnam
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* Corresponding Author.
Corresponding author's ORCID profile: https://orcid.org/0009-0009-6889-4841
Digital Object Identifier (DOI)
https://doi.org/10.21833/ijaas.2023.12.009
Abstract
This study examines how the way Vietnamese commercial banks manage their money affects their profits. Vietnam's financial scene is changing quickly, and commercial banks are always trying to make more money. Capital structure, which includes things like debt and assets, is very important in this. This research looks closely at how different parts of capital structure affect a bank's profits. It uses data from 18 commercial banks in Vietnam that are listed on the stock market. The study uses the Generalized Least Squares (GLS) method, a detailed way of analyzing data. This method shows a clear link between capital structure—which includes debt ratio, growth rate, asset turnover, and asset size—and the profits of these banks. The results show how important capital structure is and suggest ways bank managers can improve profits by changing their capital structure. This can help make the banking sector in Vietnam stronger and more effective.
© 2023 The Authors. Published by IASE.
This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
Keywords
Capital structure, Bank profitability, Vietnamese commercial banks, Generalized least squares regression, Financial management strategy
Article history
Received 15 July 2023, Received in revised form 19 November 2023, Accepted 20 November 2023
Acknowledgment
No Acknowledgment.
Compliance with ethical standards
Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.
Citation:
Mai HLT (2023). Optimizing profitability through capital structure: An empirical analysis of Vietnamese commercial banks. International Journal of Advanced and Applied Sciences, 10(12): 73-78
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