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The measurement of muccessful management via a net profit maximization model with ten factors and financial accounting disclosure policy- case of vinamilk in F&B industry in Vietnam

Author

Listed:
  • Nga Le Thi Viet

    (Ph.D., Thuongmai University Hanoi, Vietnam)

  • Lan Nguyen Thi Ngoc

    (Ph.D., Vietnam General Confederation of Labour, Vietnam)

  • Yen Ly Lan

    (Ph.D., Academy of Finance, Vietnam)

  • Huy Dinh Tran Ngoc

    (MBA, Banking University HCMC, Ho Chi Minh cityVietnam-International University of Japan, Japan)

  • Thuy Do Minh

    (Ph.D., Faculty of Economics and Business Administration, Hai Phong University, Vietnam)

Abstract

When a firm has better disclosure policy of financial accounting information it will attract more investment. Many factors affecting accounting information disclosure policy include firm size, leverage, industry characteristics, investor types, etc. And good financial accounting data disclosure will help to reduce risk level of firms. At micro level, cost and net sale factors will affect net profit while at macro levels, risk free rate and exchange rate will impact. According to Nikkei Asian Review, Vinamilk (VNM) is the only brand in F&B industry and the domestic industry leader which ranked 25th among 300 listed companies in the List of ASIA300 Power Performers. It leads the organic trend in milk industry and has made very positive contributions to the overall achievements of economic and social values. Good business management requires us to consider the impacts of multi macro and micro factors on net profit, both internal and external factors, and it contributes to promoting business plan and economic policies for economic growth and stabilizing business operation. By data collection method through statistics, analysis, synthesis, comparison, quantitative analysis to generate qualitative comments and discussion; using econometric method to perform regression equation and evaluate quantitative results, the article analyzed and evaluated the impacts of ten (10) macroeconomic factors such as: stock price, VNIndex, risk free rate, lending rate, cost, sale, inflation, GPD growth, S&P500, exchange rate, etc. on net profit of a leading milk listed company, Vinamilk (VNM) in Vietnam in the 10-year period of 2010-2019, both positive and negative sides. From that regression model and analysis, it will draw leadership features, strengths of this industrial leader. The results of quantitative research, in a ten factor model, show that the decrease in GDP growth and risk free rate, inflation and increase in net sale will have a significant effect and increase VNM net profit, with the highest impact coefficient, the second is decreasing cost. This research finding and recommended policy also can be used as reference in policy for F&B system in many developing countries.

Suggested Citation

  • Nga Le Thi Viet & Lan Nguyen Thi Ngoc & Yen Ly Lan & Huy Dinh Tran Ngoc & Thuy Do Minh, 2020. "The measurement of muccessful management via a net profit maximization model with ten factors and financial accounting disclosure policy- case of vinamilk in F&B industry in Vietnam," Management, Sciendo, vol. 24(2), pages 1-19, December.
    • Handle: RePEc:vrs:manmen:v:24:y:2020:i:2:p:1-19:n:1
    DOI: 10.2478/manment-2019-0044
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    References listed on IDEAS

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    1. Reda Cherif & Fuad Hasanov, 2018. "Public debt dynamics: the effects of austerity, inflation, and growth shocks," Empirical Economics, Springer, vol. 54(3), pages 1087-1105, May.
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    More about this item

    Keywords

    financial accounting data disclosure; VNM stock price; cost; GDP growth; inflationary; risk free rate; market interest rate;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations

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