Factors Affecting Profits at Companies in the Construction Industry Listed on the Ho Chi Minh City Stock Exchange

Abstract

The study examines and evaluates the impact of factors such as revenue growth rate, fixed asset investment, enterprise size, financial leverage, current liquidity ratio, economic growth rate, and inflation rate on the profitability of construction companies listed on the Ho Chi Minh City Stock Exchange. The study uses data from 20 construction companies listed on the Ho Chi Minh City Stock Exchange for the period 2015–2023, extracted from annual financial reports. The study uses panel data regression models, including ordinary least squares (OLS) models, fixed effects models (FEM), and random effects models (REM), as well as tests to select the appropriate model. The REM model is the initial appropriate model, but autocorrelation, heteroscedasticity, and endogeneity occur simultaneously. Therefore, continue to estimate the model using the GMM regression method so that the estimated results are unbiased and reliable. The findings show that revenue growth rate, firm size, and liquidity have positive effects on profitability, while financial leverage and economic growth rate have negative effects.