Factors affecting the business performance of pharmaceutical enterprises in Vietnam

Abstract

The objective of the study is to determine the factors affecting the business performance of the pharmaceutical enterprises at  Vietnamese market. Data were collected from 18 pharmaceutical companies on the stock exchange with 162 observations from 2010-2018. Analysis method is based on a fixed impact model (FEM) through Hausman test. The main content of the study is to consider the impact of 7 factors on the business performance of enterprises as measured by ROE value. The results show that four factors affecting the business performance are cost, tangible assets, current payment index, and receivables turnover. In particular, the cost factor has the strongest and the most opposite impact on the business performance of pharmaceutical enterprises in VietNam.