Profitability of real estate firms: Evidence using GMM estimation
This paper investigates factors affecting the profitability of real estate firms in Vietnam by using data of 55 real estate firms listed on Hochiminh and Hanoi stock exchanges over the period 2010-2018. The study applies estimation using panel data which consists of Pooled Regression model (POLS), F...
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| Format: | Article |
| Language: | English |
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Growing Science
2020-02-01
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| Series: | Management Science Letters |
| Subjects: | |
| Online Access: | http://www.growingscience.com/msl/Vol10/msl_2019_251.pdf |
| _version_ | 1818059243124686848 |
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| author | Thu-Trang Thi Doan |
| author_facet | Thu-Trang Thi Doan |
| author_sort | Thu-Trang Thi Doan |
| collection | DOAJ |
| description | This paper investigates factors affecting the profitability of real estate firms in Vietnam by using data of 55 real estate firms listed on Hochiminh and Hanoi stock exchanges over the period 2010-2018. The study applies estimation using panel data which consists of Pooled Regression model (POLS), Fixed Effects model (FEM) and Random effects model (REM). Generalized Method of Moment (GMM) is also implemented to resolve some problems such as autocorrelation among the residuals, heteroscedasticity and other potential endogenous problems. In this study, firm profitability is measured by return on assets. Like earlier studies, the findings indicate that the factors determining firm profitability were leverage, age of the firm, current ratio and inflation rate. Moreover, the results also show the impact of economic growth rate on firm profitability. The paper of-fers strong implications for the authorities, real estate firms as well as investors. |
| first_indexed | 2024-12-10T13:13:25Z |
| format | Article |
| id | doaj.art-9fa1b3e292174361bd08c63f355d05cc |
| institution | Directory Open Access Journal |
| issn | 1923-9335 1923-9343 |
| language | English |
| last_indexed | 2024-12-10T13:13:25Z |
| publishDate | 2020-02-01 |
| publisher | Growing Science |
| record_format | Article |
| series | Management Science Letters |
| spelling | doaj.art-9fa1b3e292174361bd08c63f355d05cc2022-12-22T01:47:36ZengGrowing ScienceManagement Science Letters1923-93351923-93432020-02-0110232733210.5267/j.msl.2019.8.038Profitability of real estate firms: Evidence using GMM estimationThu-Trang Thi DoanThis paper investigates factors affecting the profitability of real estate firms in Vietnam by using data of 55 real estate firms listed on Hochiminh and Hanoi stock exchanges over the period 2010-2018. The study applies estimation using panel data which consists of Pooled Regression model (POLS), Fixed Effects model (FEM) and Random effects model (REM). Generalized Method of Moment (GMM) is also implemented to resolve some problems such as autocorrelation among the residuals, heteroscedasticity and other potential endogenous problems. In this study, firm profitability is measured by return on assets. Like earlier studies, the findings indicate that the factors determining firm profitability were leverage, age of the firm, current ratio and inflation rate. Moreover, the results also show the impact of economic growth rate on firm profitability. The paper of-fers strong implications for the authorities, real estate firms as well as investors.http://www.growingscience.com/msl/Vol10/msl_2019_251.pdfProfitabilityReal estateGMMVietnam |
| spellingShingle | Thu-Trang Thi Doan Profitability of real estate firms: Evidence using GMM estimation Management Science Letters Profitability Real estate GMM Vietnam |
| title | Profitability of real estate firms: Evidence using GMM estimation |
| title_full | Profitability of real estate firms: Evidence using GMM estimation |
| title_fullStr | Profitability of real estate firms: Evidence using GMM estimation |
| title_full_unstemmed | Profitability of real estate firms: Evidence using GMM estimation |
| title_short | Profitability of real estate firms: Evidence using GMM estimation |
| title_sort | profitability of real estate firms evidence using gmm estimation |
| topic | Profitability Real estate GMM Vietnam |
| url | http://www.growingscience.com/msl/Vol10/msl_2019_251.pdf |
| work_keys_str_mv | AT thutrangthidoan profitabilityofrealestatefirmsevidenceusinggmmestimation |