Master thesis: Factor affecting the financialperformance of companies: a casestudy of listed small and medium enterprise (SME) in Vietnam

Small and medium-sized enterprises (SMEs) are the backbone of Vietnam's economy, contributing significantly to economic growth, job creation, and technological application. However, these firms face persistent challenges, including economic fluctuations and rising operational costs. The COVID-19 pandemic further disrupted global supply chains but also spurred digital transformation, making the Information and Communication Technology (ICT) and Logistics sectors particularly critical. These sectors are essential for cross-border e-commerce and industrial development, attracting significant investment interest. Understanding the factors affecting the financial performance of SMEs in these vital industries is therefore paramount for investors, policymakers, and business managers seeking to make informed decisions and ensure sustainable economic development.

Academics, researchers, financial analysts, investors, policymakers, and managers in the ICT and Logistics sectors interested in SME financial performance and economic development in Vietnam.

This master's thesis systematically investigates the critical factors influencing the financial performance of listed Small and Medium Enterprises (SMEs) within Vietnam's ICT and Logistics sectors. The study addresses the prevailing economic challenges faced by SMEs and highlights the pivotal role of these two industries in the nation's economic landscape, especially in the context of post-pandemic digital transformation. The core hypothesis posits that financial performance is significantly influenced by five key factors: firm size, management efficiency, liquidity, leverage, and working capital. To evaluate these relationships, the research employs a quantitative approach, analyzing data from audited annual reports of listed SMEs, collected primarily from Vietstock.vn. Advanced statistical methods, including regression models (Fixed Effects Model and Random Effects Model) and descriptive statistics, were utilized through Excel, SPSS, and Stata. The findings reveal that the impact of these factors varies by sector; specifically, for ICT SMEs, firm size, equity to assets (a leverage factor), and payables turnover (a working capital factor) positively influence financial performance. Similarly, for Logistics SMEs, firm size and equity to assets also demonstrate a positive effect. This comparative analysis provides valuable insights for investors to assess opportunities and risks, and for businesses to enhance their financial strategies and sustainability in these dynamic sectors.