The Impact of Financial Management Practices on Profitability of Small and Medium Enterprises (SMEs) in Vietnam

• Main Authors: Pham, Hoang Trung, 范皇中
• Other Authors: Shao Hsi Chung
• Format: Others
• Language: en_US
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/28584506354096729084

碩士 === 美和技術學院 === 經營管理研究所 === 98 === Vietnam has been one of Asia’s fastest growing economies over the last 20 years. Small and medium enterprises (SMEs) play an important role in the economic growth in Vietnam. SMEs contribute to economic development in various ways: by creating employment for rural and urban growing labor force, providing desirable sustainability and innovation in the economy as a whole. Financial management is crucial to the survival and well-being of SMEs of all types. However, with the small size about the labor force and the charter capital (not exceeding VND 10 billion), almost Vietnamese SMEs don’t have their own financial director. It is said that, profitability is one of the most concerned goal of enterprise owners, therefore studying about relations between financial management and profitability in SMEs will have more belief in the effectiveness of financial management and to be more helpful in understanding the financial management of SMEs. Thus, this thesis studies about on the impact of financial management on the profitability in the SMEs in Vietnam. This study focus on the five contexts of financial management: Capital structure management, Working capital management, Financial reporting and analysis, Capital budgeting management, Accounting information system. A questionnaire-based method was used to collect data to verify the hypotheses. A self-administered mail survey were sent to all 350 SMEs in Vietnam. ANOVA, t-test and multiple regression analysis statistics packages SPSS 14.0 were used to test the hypotheses of the study. The results of this statistical analysis have been found a positive impact correlation of financial management (Capital Structure Management, Working Capital Management, Financial Reporting and Analysis, Accounting Information System) on SMEs’ profitability. This study also presents suggestions for future financial management practices and also offers suggestions for further research.