Factors Affecting the Capital Adequacy Ratio (Car) of the Commercial Banks Listed on the Vietnam Stock Market

  • Tran Duc Minh Student of Lac Hong University (LHU)
  • Lu Phi Nga Lecturer of Lac Hong University (LHU)

Abstract

The objective of the paper was to determine the impact of factors affecting the capital adequacy ratio of commercial banks listed on the Vietnam Stock Market. This research using Panel regression techniques to analyze the factors affecting the capital adequacy ratio (CAR) of 10 commercial banks listed on the Vietnam Stock Market during the period 2008 - 2016. Data serveyed from 10 commercial banks during 2008 - 2016. Research results showed that the factors including: DEP, ROA, ROE, and SIZE affecting the capital adequacy ratio (CAR) with significance level 5 percent. However, this study had not found quantifiable evidence from the liquidity (LIQ) and loans on asset ratio (LOA) affecting the capital adequacy ratio of listed commercial banks of Vietnam Stock Market.

Abstract

The objective of the paper was to determine the impact of factors affecting the capital adequacy ratio of commercial banks listed on the Vietnam Stock Market. This research using Panel regression techniques to analyze the factors affecting the capital adequacy ratio (CAR) of 10 commercial banks listed on the Vietnam Stock Market during the period 2008 - 2016. Data serveyed from 10 commercial banks during 2008 - 2016. Research results showed that the factors including: DEP, ROA, ROE, and SIZE affecting the capital adequacy ratio (CAR) with significance level 5 percent. However, this study had not found quantifiable evidence from the liquidity (LIQ) and loans on asset ratio (LOA) affecting the capital adequacy ratio of listed commercial banks of Vietnam Stock Market.

Author Biographies

Tran Duc Minh, Student of Lac Hong University (LHU)

Student of Lac Hong University (LHU)

Lu Phi Nga, Lecturer of Lac Hong University (LHU)

Lecturer of Lac Hong University (LHU)

Published
2018-04-18
How to Cite
Minh, T., & Nga, L. (2018). Factors Affecting the Capital Adequacy Ratio (Car) of the Commercial Banks Listed on the Vietnam Stock Market. Journal of Business Management and Economics, 6(04), 19-23. https://doi.org/10.15520/jbme.v6i04.2120
Section
Articles