The Impact of Proprietary Trading Scale on Profitability and Financial Risk of Securities Companies in Vietnam

Abstract

Purpose: This study focuses on analyzing the impact of proprietary trading scale and several related factors on the profitability and financial risk of 36 securities companies in Vietnam during the period 2015 to 2024.
Design/methodology/approach: Based on a panel dataset of 360 observations from 36 securities companies over the period 2015 to 2024, the study employs the Feasible Generalized Least Squares (FGLS) estimation method to address issues of heteroskedasticity and autocorrelation.
Findings: The proprietary trading scale, company size, and stock market growth positively affect profitability, while financial leverage has a negative effect. Regarding financial risk, only two factors, stock market growth and liquidity, are found to have significant impacts.
Originality/value: This study provides new empirical evidence on the influence of proprietary trading scale, contributing to the development of effective strategies for improving profitability and managing financial risk.