Reciprocity between financial leverage and productivity of cooperative credit institutions: evidence from Vietnam
by Van Duong Ha
International Journal of Economic Policy in Emerging Economies (IJEPEE), Vol. 17, No. 1, 2023

Abstract: Cooperative credit institutions (CCIs) are increasingly accessing financial resources to finance the lending operations and improve their productivity. This study's purpose is to discover the factors' impact on the financial leverage and productivity of CCIs in Vietnam. After regression analysis on a set of panel data from 2013 to 2018 of 32 selected CCIs in Vietnam, it appeared that the depth of outreach, productivity and return on equity had positive relationships with financial leverage, while the age of CCIs, credit size, equity growth ratio and return on assets had negative relationships with financial leverage. The deposit, equity growth rate, financial leverage and return on assets had positive relationships with productivity. The depth of outreach, loan-to-deposit ratio, return on equity and non-performing loan ratio had negative relationships with productivity. The study found the interactive relationship between financial leverage and productivity. This study helps managers understand the key determinants for better management of CCIs.

Online publication date: Thu, 19-Jan-2023

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economic Policy in Emerging Economies (IJEPEE):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com