Macroeconomic factors and firm performance – the case in the stock

Abstract

Enterprises are an important entity in the economy and play a great role in creating jobs, carrying out production and business activities, contributing to the state budget, connecting foreign trade activities and creating development in each country. When businesses grow, it means that businesses contribute more to the national interest, therefore, countries need to create a favorable business environment to help businesses develop. Business operations are often affected by fluctuations in the macroeconomic environment in particular and government policies in general. Therefore, businesses always have to find ways to adapt to the impacts of macro factors, external shocks that may affect their business activities and from there, businesses can survive and develop. development, achieve financial benefits. The efficiency of a business is often measured by financial performance, it reflects the profit that a business can reap in business. One of the parameters that can reflect the efficiency of a business is the return on assets (ROA). The objective of the research is to evaluate the influence of macro factors on the financial performance of enterprises on the Vietnamese stock exchange in the period 2008 to 2020, using quantitative analysis method, analysis results analysis assert that: financial development has a positive effect on economic growth, which means that domestic credit poured into private enterprises often improves the financial performance. Moreover, the research results also suggest that enterprises choose to finance capital through equity, which is likely to increase the financial performance. In addition, in this research, we did not find the impact of economic growth, corporate liquidity on financial performance. It reflects that economic growth does not always bring practical effects to businesses, but economic growth needs to create qualitative changes and help businesses improve efficiency in a real way that contribute to the development of enterprises.