Factors affecting operating performance in financial aspects of businesses in Nam Dinh Province

Abstract

Financial efficiency is a critical metric to access a company's operating performance. In terms of financial aspects of the business, evaluating the effect of factors influencing operational efficiency is crucial. The aim of this article is to look into the impacts on operating performance in terms of financial aspects of businesses in Nam Dinh province. Financial ratios are measured by rate of return on assets (roa), return on equity (roe), return on sales (ros), return on investment (roi). Using quantitative research methods through linear regression model estimation based on 520 businesses in Nam Dinh province by 2020, the results show that the influencing factors of business performance in terms of finance are: (1) use of resources, (2) state policy, (3) capital, (4) information technology, respectively. And the authors proposes some suitable solutions for managers to improve the financial performance of companies in Nam Dinh province.