Solutions To Enhance The Level Of Capital Sufficient Securities Companies: The Case Of Vietnam

Abstract

Researching the factors affecting the capital adequacy of Vietnamese securities companies, through a linear regression model presented in the form of two-dimensional panel data: the time dimension (from 2014 to 2021).), the spatial dimension is the enterprise (48 securities companies), corresponding to 238 observations, using STATA 14 software (and SPSS 20) to analyze and select the regression model, to test and estimate the data regression model. whether the array. The results found three factors affecting the size of equity capital, the level of capital adequacy of Vietnamese securities companies, which are: Size of securities company's assets (LnTTS); Liabilities to Equity (D/E) and Inflation (Inf). The R-squared index is equal to 0.731, which means that 3 independent variables, corresponding to 3 factors, explain 73.1% of the variation of the dependent variable, the degree of capital adequacy. Implications of financial solution management to improve profitability for securities companies include: Controlling hot growth, increasing the size of business equity through diversifying mobilization sources (such as through issue shares, increase retained earnings, seek foreign strategic shareholders, mergers and acquisitions, investment funds, etc.), and at the same time reduce debt capital mobilization and reduce financial leverage. In terms of long-term strategy, securities companies need to improve efficiency by focusing on strong customer segments (such as online securities companies, small and medium-sized enterprises or small and medium-sized enterprises). investment goods). Besides, longtime securities companies recommend restructuring the apparatus to improve ROE and thereby the company will achieve its profit target.