THE IMPACTS ON OPERATING PERFORMANCE IN TERMS OF 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. In which, using resources has the strongest influence
on business performing efficiency.