International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

Frequency: 12
line decor
  
line decor

 Volume 9, Issue 1 (January 2022), Pages: 148-153

----------------------------------------------

 Original Research Paper

 Title: Factors affecting asset investment of public companies in plastic and packaging industry in Vietnam

 Author(s): Xuan Dung Vu 1, Thi Thu Ha Pham 2, Thi Hai Hau Dinh 2, Nguyet Minh Nguyen 3, *

 Affiliation(s):

 1Faculty of Banking and Finance, Thuongmai University, Hanoi, Vietnam
 2Faculty of Finance and Accounting, Hanoi Tourism College, Hanoi, Vietnam
 3Faculty of Transport Economics, University of Transport Technology, Hanoi, Vietnam

  Full Text - PDF          XML

 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0002-2059-6951

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2022.01.017

 Abstract:

The purpose of this research is to identify and analyze the influence of internal factors on asset investment of public companies in the plastic and packaging industry in Vietnam. The research has built a regression model to determine the relationship of internal factors affecting asset investment of public companies in the plastic and packaging industry in Vietnam. The strength of this research is to use the E-view software in quantitative analysis to build a panel data regression model. At the same time, the researchers used the Hausman test to select the appropriate model compared to other research. The data of the research are collected and calculated from the financial statements of 27 companies in the plastic and packaging industry in Vietnam from 2013 to 2020. The research results show that such factors as sale, equity, and debt ratio have a positive impact on asset investment, the return on assets has a negative impact on asset investment, while the average loan interest rate does not affect the asset investment of enterprises. Therefore, the author has made recommendations to help public companies in the plastic and packaging industry in Vietnam to improve the efficiency of asset investment. The results of this research are very useful for corporate financial managers in helping them make appropriate financial decisions for their companies. 

 © 2022 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: Asset investment, Plastic and packaging industry, Sale, Equity, Debt ratio

 Article History: Received 4 September 2021, Received in revised form 22 November 2021, Accepted 23 November 2021

 Acknowledgment 

No Acknowledgment.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Vu XD, Pham TTH, and Dinh THH et al. (2022). Factors affecting asset investment of public companies in plastic and packaging industry in Vietnam. International Journal of Advanced and Applied Sciences, 9(1): 148-153

 Permanent Link to this page

 Figures

 No Figure 

 Tables

 Table 1 Table 2 Table 3 Table 4 Table 5   

----------------------------------------------    

 References (11)

  1. Abel AB and Eberly JC (1994). A unified model of investment under uncertainty. The American Economic Review, 84(5): 1369-1384.   [Google Scholar]
  2. Aivazian VA, Ge Y, and Qiu J (2005). Debt maturity structure and firm investment. Financial Management, 34(4): 107-119. https://doi.org/10.1111/j.1755-053X.2005.tb00120.x   [Google Scholar]
  3. Allen DE (1993). The pecking order hypothesis: Australian evidence. Applied Financial Economics, 3(2): 101-112. https://doi.org/10.1080/758532828   [Google Scholar]
  4. Baskin J (1989). An empirical investigation of the pecking order hypothesis. Financial Management, 18(1): 26-35. https://doi.org/10.2307/3665695   [Google Scholar]
  5. Chen CR and Steiner TL (1999). Managerial ownership and agency conflicts: A nonlinear simultaneous equation analysis of managerial ownership, risk taking, debt policy, and dividend policy. Financial Review, 34(1): 119-136. https://doi.org/10.1111/j.1540-6288.1999.tb00448.x   [Google Scholar]
  6. Erkaningrum FI (2013). Interactions among insider ownership, dividend policy, debt policy, investment decision, and business risk. Journal of Indonesian Economy and Business, 28(1): 132-148.   [Google Scholar]
  7. Galan JI, Gonzalez-Benito J, and Zuñiga-Vincente JA (2007). Factors determining the location decisions of Spanish MNEs: An analysis based on the investment development path. Journal of International Business Studies, 38(6): 975-997. https://doi.org/10.1057/palgrave.jibs.8400304   [Google Scholar]
  8. Gelos RG and Werner AM (2002). Financial liberalization, credit constraints, and collateral: Investment in the Mexican manufacturing sector. Journal of Development Economics, 67(1): 1-27. https://doi.org/10.1016/S0304-3878(01)00175-4   [Google Scholar]
  9. Jong ED, Budina N, and Garretsen H (2000). Liquidity constraints and investment in transition economies: The case of Bulgaria. Economics of Transition, 8(2): 453-475. https://doi.org/10.1111/1468-0351.00051   [Google Scholar]
  10. Le BL and Le VH (2012). PHÂN TÍCH CÁC YẾU TỐ ẢNH HƯỞNG ĐẾN QUYẾT ĐỊNH ĐẦU TƯ CỦA DOANH NGHIỆP TẠI TỈNH TIỀN GIANG [Analysing determinants of firms’ investment in Tien Giang province]. TẠP CHÍ KHOA HỌC TRƯỜNG ĐẠI HỌC MỞ TP.HCM [Scientific Journal of Open University HCMC], 7(3): 3-18.   [Google Scholar]
  11. Pham LT, Le KN, Le TN, Phan AT, and Huynh VK (2008). PHÂN TÍCH CÁC YẾU TỐ ẢNH HƯỞNG ĐẾN QUYẾT ĐỊNH ĐẦU TƯ CỦA CÁC DOANH NGHIỆP NGOÀI QUỐC DOANH Ở KIÊN GIANG [Analysis of factors affecting investment decisions of non-state enterprises in Kien Giang]. Tạp chí Khoa học [Journal of Science], 9: 103-112.   [Google Scholar]