Volume 13, Issue 5 (May 2026), Pages: 216-224

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 Original Research Paper

The impact of macroeconomic factors and capital structure on the profitability of listed commercial banks in Vietnam: Evidence from the PCSE method

 Author(s): 

Thi Hoai Thu Ho ¹, Phuong Hoa Hoang ^2, *

 Affiliation(s):

¹Faculty of Economics, Academy of Finance, Hanoi, Vietnam
²Faculty of Banking and Insurance, Academy of Finance, Hanoi, Vietnam

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 * Corresponding Author. 

   Corresponding author's ORCID profile:  https://orcid.org/0009-0001-9445-2424

 Digital Object Identifier (DOI)

 
https://doi.org/10.21833/ijaas.2026.05.020

 Abstract

This study examines the impact of macroeconomic factors and capital structure on the profitability of listed commercial banks in Vietnam during the period 2014–2024. The study uses a balanced panel dataset of 15 listed commercial banks in Vietnam. Bank-level data were collected from the annual financial statements of the banks, while macroeconomic data were obtained from the General Statistics Office and the State Bank of Vietnam. The Panel-Corrected Standard Errors (PCSE) method was applied to address heteroskedasticity and cross-sectional dependence among banks. Return on assets (ROA) was used as the dependent variable to measure bank profitability, while the independent variables included GDP growth (GDP), money supply (M2), policy interest rate (RIR), capital structure (TLEV), and bank size (SIZE). The findings indicate that GDP, M2, and TLEV negatively affect ROA, whereas RIR and SIZE have positive effects on profitability. Inflation (INF) was not significant in the original PCSE model; however, it became significant when lagged effects were included. This study contributes to the literature by providing recent empirical evidence using the PCSE approach to clarify the effects of macroeconomic and internal factors on the profitability of listed commercial banks in Vietnam, and it offers recommendations to improve banking operational efficiency.

 © 2026 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords

Commercial banks, Macroeconomic factors, Capital structure, Bank profitability, PCSE method

 Article history

Received 18 January 2026, Received in revised form 18 May 2026, Accepted 22 May 2026

 Acknowledgment

This research is supported by the Academy of Finance (Grant number: 1422/QD-HVTC). 

 Compliance with ethical standards

 Citation:

Ho THT and Hoang PH (2026). The impact of macroeconomic factors and capital structure on the profitability of listed commercial banks in Vietnam: Evidence from the PCSE method. International Journal of Advanced and Applied Sciences, 13(5): 216-224

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