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

 Full text

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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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 Tables

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