Title: Interaction among productivity and financial performance of people's credit funds in Vietnam

Authors: Van Duong Ha

Addresses: Research and Development Center, Safa Corp, No 78/35 Ba Van, Ward 14, Tan Binh District, Ho Chi Minh City, Vietnam

Abstract: This study's purpose is to discover the interaction relationship between productivity and financial performance of people's credit funds (PCFs) in Vietnam. After regression analysis on a set of panel data from 2013 to 2018 of 24 selected PCFs in Vietnam, it appeared that the age of PCFs and productivity have positive relationships with financial performance; the credit growth rate and non-performing loan ratio have negative relationships with financial performance. The debt-to-loan ratio has a positive relationship with return on equity, but it has a negative relationship with return on assets. The equity growth rate, deposit, debt-to-loan ratio, return on assets have positive relationships with productivity. The depth of outreach, loan-to-deposit ratio, return on equity and non-performing loan ratio have negative relationships with productivity. The study found the bidirectional interactions between productivity and financial performance. Through the findings, this study helps managers understand the key determinants for better management of PCFs.

Keywords: credit growth; financial performance; people's credit fund; PCF; productivity; return on assets; Vietnam.

DOI: 10.1504/IJSEM.2021.119907

International Journal of Services, Economics and Management, 2021 Vol.12 No.4, pp.338 - 366

Received: 23 Nov 2019
Accepted: 18 Dec 2020
Published online: 23 Dec 2021 *

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