Factors Affecting the Profitability (ROA) of Businesses in the Food - Beverage Industry Listed on the Ho Chi Minh City Stock Exchange

Abstract

The purpose of this study is to investigate the factors affecting the profitability of
enterprises, especially enterprises in the food industry listed on the Ho Chi Minh City Stock
Exchange. The study examines and evaluates the impact of the following factors: Company
size, liquidity, asset structure, revenue growth, capital structure, financial leverage, GDP,
inflation on profitability (ROA). The study was conducted on 23 enterprises in the period from
2018-2023. The study uses quantitative methods: Descriptive statistics, model selection by
estimating the pooled regression model (Pooled OLS), the fixed effects model (Fixed Effects
Model - FEM) and the random effects model (Random Effect Model - REM) using Stata 14.2
software, and at the same time, studies to overcome defects by estimating dynamic models
using the two-step D-GMM method. The overall results show that company size, liquidity, asset
structure, revenue growth, financial leverage, and GDP have a positive impact on ROA.
Meanwhile, profitability is not affected by inflation or capital structure. From the research
results, discuss and propose some management implications to improve profitability for
enterprises in the Food and Beverage industry listed on the Ho Chi Minh City Stock Exchange.