Giới thiệu tài liệu
A study on the effect of capital on financial operations of small and medium enterprises (SMEs) in Ho Chi Minh City, Vietnam. The research used a sample of 228 SMEs operating over a five-year period from 2013 to 2017. Results show that capital has a positive impact on profitability indicators such as Return On Assets (ROA) and Return On Equity (ROE). The study also found that the ability to generate liquid assets is an important factor in determining the financial performance of SMEs.
Đối tượng sử dụng
Small and Medium Enterprises (SMEs), entrepreneurs, bankers, financial analysts, policy makers, students, academics
Nội dung tóm tắt
This report provides insights into the relationship between capital and financial operations of small and medium enterprises (SMEs) in Ho Chi Minh City, Vietnam. The research employed Ordinary Least Squares (OLS), Fixed Effects Model (FEM), and Random Effects Model (REM) to examine the impact of capital on Return On Assets (ROA) and Return On Equity (ROE). Key findings indicate that:
1. The Capital-to-Assets ratio has a positive and statistically significant effect on both ROA and ROE, meaning that an increase in capital levels leads to improved profitability.
2. A higher level of debt financing negatively affects profitability indicators, implying that SMEs with high debt ratios may face financial distress.
3. The ability to generate liquid assets is crucial for the financial health of SMEs as it enhances their financial flexibility and reduces dependence on external funding.
Based on these findings, recommendations are made for SMEs, banks, and policy makers to prioritize strategic management of capital resources, careful assessment of debt financing, and encouragement of liquidity management practices.
