IMPACT OF EQUITY CAPITAL RATIO ON PROFITABILITY OF VIETNAMESE TELECOM FIRMS

Abstract

Abstract: The paper studies the impact of equity capital ratio on the profitability of the three largest telecom enterprises in Vietnam: Vietnam Posts and Telecommunications Group (VNPT), Military Industry-Telecoms Group (Viettel), and MobiFone Telecommunications Corporation (MobiFone). In the paper, data have been collected from the financial reports of these firms during the period from 2016 to 2020, including the return on assets (ROA), return on equity (ROE), equity capital ratio, total assets, and revenue of the companies. Multiple regression analysis has been utilized to evaluate the impact of independent variables on two dependent variables ROA and ROE. The research findings show that equity capital ratio has a positive effect on both ROA and ROE.

Keywords: Revenue; Equity Capital Ratio; Profitability; Return on Assets; Return on Equity.