Master thesis: Analysis of factors affecting the financial performance of securities companies and banks in Vietnam

The financial and banking sectors in Vietnam are pivotal to the nation's economic stability and development, characterized by unique regulatory landscapes, inherent risks, and deep interconnections with macroeconomic dynamics. In an era marked by rapid technological advancements like Fintech, digital transformation, and the integration of Artificial Intelligence, these institutions face significant pressures to adapt and enhance operational efficiency. Concurrently, the national objective of upgrading the Vietnamese stock market underscores the critical need for a comprehensive understanding of financial sector performance. This thesis addresses this imperative by delving into the complex factors influencing the financial performance of securities companies and banks in Vietnam, providing essential insights for policymakers, investors, and industry stakeholders navigating this evolving landscape.

Researchers, academics, financial analysts, policymakers, and management in the banking and securities sectors in Vietnam.

This master's thesis provides a comprehensive analysis of factors affecting the financial performance and profitability of securities companies and banks in Vietnam. Focusing on 48 such entities listed on the Vietnamese stock market between 2010 and 2020, the study employs robust quantitative analysis methods, specifically panel data regression, to identify key determinants. The research meticulously investigates how variables such as the operational sector (securities industry vs. banking), operating time, cash flow, lagged profitability, financial leverage, fixed assets to total assets ratio, and pre-tax income to total assets ratio influence firm profitability. Key findings reveal that the securities industry, operating time, and cash flow positively impact profitability, suggesting that efficient liquidity management and sector-specific advantages are crucial. Conversely, factors like lagged profitability, leverage, fixed assets, and the ratio of pre-tax income to total assets are found to have a negative influence. A notable insight is the significant positive impact of cash flow across both industries. The study also highlights that while initial experience enhances profitability, older companies face challenges in sustaining profit growth beyond a certain point. Furthermore, the securities industry demonstrates higher overall profitability compared to the banking industry, though the latter exhibits more stable profit margins. These results offer valuable implications for strategic management and policy formulation within Vietnam's dynamic financial sector, aiding institutions in optimizing their performance and contributing to economic stability.