Optimizing profitability through capital structure: An empirical analysis of Vietnamese commercial banks

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 importa...

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Main Author: Huong Le Thi Mai
Format: Article
Language:English
Published: Institute of Advanced Science Extension (IASE) 2023-12-01
Series:International Journal of Advanced and Applied Sciences
Online Access:http://www.science-gate.com/IJAAS/2023/V10I12/1021833ijaas202312009.html
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author Huong Le Thi Mai
author_facet Huong Le Thi Mai
author_sort Huong Le Thi Mai
collection DOAJ
description 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.
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spelling doaj.art-a717aaf4109542a191dcd63e6a762a9c2024-02-17T15:46:40ZengInstitute of Advanced Science Extension (IASE)International Journal of Advanced and Applied Sciences2313-626X2313-37242023-12-011012737810.21833/ijaas.2023.12.009Optimizing profitability through capital structure: An empirical analysis of Vietnamese commercial banksHuong Le Thi Maihttps://orcid.org/0009-0009-6889-4841 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.http://www.science-gate.com/IJAAS/2023/V10I12/1021833ijaas202312009.html
spellingShingle Huong Le Thi Mai
Optimizing profitability through capital structure: An empirical analysis of Vietnamese commercial banks
International Journal of Advanced and Applied Sciences
title Optimizing profitability through capital structure: An empirical analysis of Vietnamese commercial banks
title_full Optimizing profitability through capital structure: An empirical analysis of Vietnamese commercial banks
title_fullStr Optimizing profitability through capital structure: An empirical analysis of Vietnamese commercial banks
title_full_unstemmed Optimizing profitability through capital structure: An empirical analysis of Vietnamese commercial banks
title_short Optimizing profitability through capital structure: An empirical analysis of Vietnamese commercial banks
title_sort optimizing profitability through capital structure an empirical analysis of vietnamese commercial banks
url http://www.science-gate.com/IJAAS/2023/V10I12/1021833ijaas202312009.html
work_keys_str_mv AT huonglethimai optimizingprofitabilitythroughcapitalstructureanempiricalanalysisofvietnamesecommercialbanks