DOI: 10.14704/nq.2022.20.11.NQ66206

FACTORS AFFECTING THE FINANCIAL SAFETY OF SECURITIES BROKERAGE COMPANIES

Tran Van Hai,

Abstract

The research aims to evaluate the variables influencing brokerage firms' financial security in the Vietnamese stock market. A total of 649 observations spanning 2010 to 2019 were collected from the research sample of 40 securities trading firms on the Vietnamese stock market. The author has identified seven factors influencing operational efficiency, including: (1) Enterprise size (Size); (2) Debt-to-equity ratio (Lev); (3) Short-term debt ratio (Std); (4) Fixed asset investment rate (Inv); (5) Operational efficiency (Ine); (6) Age of the enterprise (Age); and (7) Inflation (CPI). Based on the research, the author provides a variety of analyses and discussions on the significance of raising the capital adequacy ratio, financial security, and financial solution recommendations aimed at raising the financial security of brokerage firms on the Vietnamese stock market as well as with other nations with stock markets with securities similar to those in Vietnam.

Keywords

Financial safety, Risk management, available capital ratio,securities brokerage company, Vietnam securities company

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