The relationship between tax revenue and economic growth: an empirical study in Vietnam
My-Linh Thi Nguyen; Nga Phan Thi Hang; Toan Ngoc Bui; Hoai Thu Ho; Tung Duy Thai
Afro-Asian J. of Finance and Accounting, Vol. 13, No. 4 (2023) pp. 434 - 451
This paper focuses on examining the impact of tax revenue on economic growth in Vietnam. In particular, tax revenue is measured through tax revenue ratio or the government's total tax revenue to GDP. The research data were collected on a yearly basis in the period 1990-2019. Through the vector autoregressive (VAR) model, the paper has achieved great success when finding the positive impact of tax revenue (TAX) on economic growth in Vietnam; however, this impact is negative in the long term. Conversely, economic growth has a positive impact on tax revenue with one lag and three lags. In addition, economic growth in Vietnam is affected by domestic savings (SAV), trade openness (OP), government spending (GOV), and domestic investment (CAP); meanwhile, tax revenue is affected by domestic savings (SAV), trade openness (OP), and government spending (GOV). The paper is the first empirical evidence in Vietnam for the relationship between tax revenue and economic growth. Therefore, the research results have important implications for the Government of Vietnam to have a basis to administer tax policies in order to stimulate economic growth in a sustainable way.
Tag: Vietnam
Ownership concentration and firm valuation in a typical frontier market
Ownership concentration and firm valuation in a typical frontier market
Nam Hoai Tran; Chi Dat Le
Afro-Asian J. of Finance and Accounting, Vol. 12, No. 4 (2022) pp. 427 - 454
This study investigates the valuation effect of concentrated ownership in a typical frontier market. Using an extensive sample of Vietnamese publicly listed firms, we find that the valuation effect is inconclusive before combined equity holdings reach a certain threshold beyond which market valuation increases exponentially with ownership. The latter <i>log-linear</i> effect can be interpreted as a more profound dominance of the monitoring incentives of large shareholders over the potential expropriation of minority shareholders at higher levels of concentration. Our finding reconciles the seemingly conflicting results of previous studies and contributes to understanding corporate governance practices in frontier markets.
Loan loss provisions, earnings management, capital management, and signalling: the case of Vietnamese banks
Loan loss provisions, earnings management, capital management, and signalling: the case of Vietnamese banks
Tu D.Q. Le; Liem T. Nguyen; Son H. Tran
Afro-Asian J. of Finance and Accounting, Vol. 11, No. 5 (2021) pp. 755 - 771
This study examines loan loss provision (LLP) behaviours of Vietnamese banks between 2006 and 2015. The findings show that earnings management is positively related to LLP regardless of the restructuring period, suggesting that LLPs can be used by Vietnamese banks as a mechanism for aggressive earnings management. There appears to be no capital management before the restructuring period. However, the findings indicate that Vietnamese banks use capital management with LLP during the restructuring period. Furthermore, the positive relation between LLP and future earnings during the restructuring period suggests that investors may view an abnormal increase in LLP as a signal of loan quality. The findings further demonstrate that LLP is positively associated with bank inefficiency, credit growth, bank size, and lending specialisation. State-owned commercial banks are found to reserve a greater level of provisions compared to privately owned commercial banks. Based on the research findings, we offer several implications for relevant stakeholders.
Factors influencing the application of fair value of Vietnamese enterprises: an extension study of the theory of planned behaviour
Factors influencing the application of fair value of Vietnamese enterprises: an extension study of the theory of planned behaviour
Nguyen Ngoc Lan; Vu Thi Kim Anh; Nguyen Thi Thanh Phuong
Afro-Asian J. of Finance and Accounting, Vol. 11, No. 2 (2021) pp. 237 - 265
This study is based on theory of planned behaviour to understand how the factors of awareness of businesses influence support applying fair value (FV) in Vietnamese businesses. Based on the data collected from 558 managements and accountants, we performed the data analysis process. The methods of descriptive statistics, Cronbach's alpha, exploratory factor analysis to find the convergence of observed forming new factors and correlation analysis with binary logistic regression model were used in this study. The article result shows that: the factor of 'awareness of challenges in business environment and legal environment' has the greatest influence and negative effects on support applying FV in accounting at Vietnamese businesses whereas the factor of 'awareness of the benefits of improving financial statement quality' has the second influence and positive effects on this issue. On the basis of research results, we will propose some recommendations for promoting the application of FV in Vietnam.
The impacts of public investment on return and economic growth by economic industry in Vietnam
The impacts of public investment on return and economic growth by economic industry in Vietnam
Nguyen Thi Canh; Nguyen Thi Thuy Lien
Afro-Asian J. of Finance and Accounting, Vol. 10, No. 3 (2020) pp. 320 - 340
This study empirically analyses the impact of public investment from government budget on economic growth by measuring the indirect effects of public investment on return and private investment in 16 economic industries from 1990 to 2016. The findings show the positive relationship between private investment and return on total assets by industry. Economic growth, the share of public investment in infrastructure and the share of public investment in education also have a positive impact on return on total assets by industry. However, total state sector investment has the negative effect on the return on total assets by industry. In addition, when observing after tax profit by industry, there appears that the share of total investment in GDP is positively affected by the share of manufacturing industry in GDP and labour productivity by industry.
New evidence for the determinants of foreign investment in an Asian market
New evidence for the determinants of foreign investment in an Asian market
Ben Le
Afro-Asian J. of Finance and Accounting, Vol. 10, No. 2 (2020) pp. 151 - 167
This paper examines foreign investment in Vietnamese stock markets from 2013 to 2016. Previous studies for sample periods prior to 2013 find that foreigners invested relatively more in low liquidity shares. In contrast, this paper shows that foreigners now invest relatively more in high liquidity stocks. This study also investigates the investment determinants of foreign blockholders who own at least 5% of shares outstanding separately from those of the other foreign investors. The results show that foreign blockholders are more available to assume certain types of risk than the other foreign investors. Further, the investment preferences are similar between foreign blockholders and local blockholders. The results of the paper suggest that the availability of investors to assume risk, which is dependent on their wealth levels, is a possible explanation of equity home bias.