Factors Affecting the Profitability of Real Estate Companies Listed on the Stock Exchange in Vietnam

Abstract

In early 2024, Vietnam's real estate market is forecast to have development potential and will change and progress significantly well; this will also be the year that lays the foundation for a new cycle. Understanding factors affecting profitability of real estate firms on the Stock Exchange will help investors, regulators, and businesses have a clearer view of the potential and risks of the real estate market. This article studies the factors affecting the profitability of 44 real estate firms listed on the Vietnamese Stock Exchange in the period 2018-2023 using 3 regression models: OLS, FEM, and REM. The results show that financial leverage has a negative impact on the profitability of real estate businesses; on the contrary, asset structure, liquidity, and revenue growth rate have a positive influence.