Science & Technology Development Journal: Economics- Law & Management

Latest Articles

1. Research article

   Bank credit and trade credit: The moderating role of financial constraints

   Liêm N.,ễn Tran A., Pham T., Le A., Le T., Nguyen V.

   Trade credit is an important source of financing, and its proper management is essential to the survival and thriving of firms. Meanwhile, bank credit also plays as a critical funding source, especially in the setting of developing and emerging markets with high level of information opaqueness and low institutional quality. The current research examines the determinants of accounts payable using a sample of 590 firms listed in Vietnam from 2015 to 2022, focusing on the choice between bank credit and trade payables. We utilize panel data estimation methods, including the fixed effects model (FEM) and the random effects model (REM). The study provides evidence supporting the substitution effect between banks’ short-term and long-term loans and trade credit. Therefore, it is evident that many firms, when granted access to bank loans, exhibit a propensity to favor borrowing from banks rather than relying on accounts payable. The study differs from other similar studies by examining both short-term and long-term loans, rather than just short-term bank financing. Furthermore, the analysis of the moderating effect of financial constraints reveals that firms that less financially constrained firms seek more bank credit than trade credit. Again, this emphasizes the priority for bank loans over supplier financing, as well as the role of bank credit in a bank-based financial market such as Vietnam. We also find that cash holdings, annual revenue growth rates and firm size are significantly related to trade credit use. The results are robust throughout several robustness checks and the effort to control for the potential endogeneity issue. Based on the research findings, we offer implications for relevant stakeholders on managing of external financing, including both bank and interfirm financing.

   Published: 2024-11-01In press
2. Research article

   Composite index assessing the level of economic development at the provincial level in Vietnam

   Nguyễn T.ắn.

   At the provincial and city levels in Vietnam, many individual statistical indicators reflect the socioeconomic situation, making it difficult to capture and synthesize general information. The economic development of a province is often understood as the growth of the Gross Regional Domestic Product (GRDP). Still, it needs to demonstrate the multidimensionality of the concept of economic development. Therefore, building a comprehensive index to measure the level of economic development at the provincial level is very necessary, contributing to supplementing statistical tools to evaluate the economic development of the province in Vietnam. The composite index is formed from 19 indicators of 5 components: Demographic characteristics, labor-employment, resources, competitiveness, and quality of life. Data source is collected mainly from data from the Statistics for the period 2016-2020. Data are standardized by Z-score with weights estimated by the Principal Component Analysis (PCA) and composite index calculated from the weighted average of 5 main components with weight being the explained variance of the components. The results of the composite index show that Ho Chi Minh City and Hanoi are the economic centers of the country with the highest level of development. In contrast, the Northern midlands and mountain areas provinces have the lowest level of development. In addition, the study shows that a clear difference in the level of economic growth between the six regions in Vietnam. Besides, there is statistical evidence of spatial correlation between provinces in Vietnam, so the spatial Durbin model is used to replace the panel data OLS model. Spatial regression analysis shows that the proportion of population, businesses, and HDI have an impact on the level of economic development of the host locality, in addition, the proportion of the population also has a positive effect on the level of development economic development of neighboring localities.

   Published: 2024-09-30In press
3. Review

   The impact of Corporate social responsibility on Brand equity: A Study in the hotel service industry in Ho Chi Minh City: Theoretical basis and proposed research model

   Tuan Thanh P., Hac L., Dat T.

   Corporate Social Responsibility is an essential factor in business operations, with the state of Corporate Social Responsibility varying globally across countries and industries. Brand equity plays a crucial role in the sustainable development of an organization, reflecting its vision, values, and ethical standards, promoting positive social and environmental activities, and providing sustainable value products and services to customers. Although theoretical and empirical studies have demonstrated a direct relationship between Corporate Social Responsibility and brand equity, the indirect relationship and moderating factors between these two elements remain questionable. This study aims to systematize the theoretical basis and propose a research model to address this issue. Specifically, based on the Triple Bottom Line theory, the study identifies the components of Corporate Social Responsibility; based on the Hierarchical Impact Theory, the article outlines the direct impact of Corporate Social Responsibility on brand equity; based on the Social Exchange Theory, the study proposes two mediating variables Customer Trust and Customer Commitment; and based on the Co-Creation of Value Theory, the research discusses the moderating mechanism of Customer Engagement on the relationship between Corporate Social Responsibility and brand equity.

   Published: 2024-09-30In press
4. Research article

   Livelihood vulnerability of Vietnam rural household: An analysis using the livelihood vulnerability framework

   Chuong H., Phương N.ễn

   This study aims to investigate the livelihood vulnerability of Vietnam households in rural areas to climate change impacts. By applying the livelihood vulnerability index (LVI-IPCC), a composite index that measures exposure, sensitivity, and adaptive capacity to climate change. This paper calculated the LVI-IPCC index using data from 26,741 household observations from the Vietnam Household Living Standard Survey across 63 provinces in Vietnam. Results showed significant regional disparities in livelihood vulnerability levels. The Mekong Delta, Northern Midlands and Mountainous, and Highland regions had the highest overall vulnerable index scores among Vietnam's major regions, indicating greater vulnerability to climate change impacts on rural livelihoods. At the provincial level, Cao Bang, Thua Thien-Hue, Quang Tri, Kon Tum, Kien Giang, Soc Trang, Son La, Quang Ngai, Lao Cai, and Tra Vinh emerged as the most vulnerable provinces. The study highlights the need for targeted adaptation strategies and policies to enhance the resilience of rural livelihoods, particularly in the most vulnerable regions and provinces identified. Finally, the authors suggest policy implications for adapting to climate change impacts and mitigating the negative effects on the livelihoods of rural households in Vietnam.

   Published: 2024-09-30In press
5. Research article

   The impact of relationship marketing on business performance with the mediating role of loyalty and market position – Industrial market case

   HO D., Hoang C.

   In industrial markets, partnerships are based on mutual benefits between sellers and buyers. In this market, attracting a customer to become a business partner is difficult, maintaining and developing customer relationships is even more difficult and requires countless efforts from the seller, including the support and cooperation of the buyer. The principles of relationship marketing are built on this foundation. The goal of the research is to confirm the influence of relationship marketing on business performance through the mediating role of loyalty and the enterprise's market position. Accordingly, a structural equation model was formed to test the impact of relationship marketing components (trust, shared value, and bonding) on business performance, while loyalty and market position play a mediating role in this relationship. Empirical research was conducted: respondents are businesses that implement relationship marketing programs with their business partners; the number of valid questionnaires is 385. Survey data were analyzed using SPSS and AMOS statistical software. Research results show: (1) components of relationship marketing (trust, shared values, and bonding) have a positive and direct impact on loyalty and market position; (2) loyalty and market position have a positive and direct impact on business performance. In particular, shared value has the strongest impact on the market position of the business, and trust has the strongest impact on customer loyalty to the business. Next, loyalty has the strongest impact on business performance. Finally, the research has provided useful implications for helping businesses develop relationship marketing activities in the right and effective way to enhance their market position and business performance.

   Published: 2024-09-30In press
6. Research article

   The impact of financial reporting quality and audit quality on investment efficiency: Empirical evidence in Vietnam

   Nguyễn K.,ươn., Khoa T.ần

   The economic growth of a country is closely tied to the development of domestic enterprises. To meet development objectives, companies must effectively invest by integrating various sources of capital. Consequently, investment efficiency is a crucial determinant of growth, impacting not only individual enterprises but also the broader economy.. As a result, the factors influencing investment efficiency are given considerable attention, particularly research on the impact of financial reporting information quality, audit quality, and investment efficiency, garnering attention from both managerial circles and academic researchers. However, there remains to be more consensus in research findings on this area. Therefore, this research examines the impact of financial reporting information quality and audit quality on investment efficiency. Quantitative analysis through REM, FEM and PCSE techniques with a sample of 673 non-financial enterprises listed on the Vietnamese stock market from 2015 to 2022. The results of the article show that the quality of financial reporting information and audit quality positively influence investment efficiency. Research implications give stakeholders such as businesses, authorities, and managers an effective mechanism to maximize profits through effective investment decisions.

   Published: 2024-09-30In press
7. Research article

   Credit rating by clustering algorithm in the Vietnam Stock Exchange market

   Tam P., Chu Quang T.

   This study employs the K-means clustering algorithm to develop a corporate credit rating framework tailored to the Vietnamese market. By analyzing financial data from 568 non-financial firms listed on the Ho Chi Minh City Stock Exchange and the Hanoi Stock Exchange between 2019 and 2023, the research identifies vital financial indicators, including financial health ratios, management efficiency ratios, growth ratios, and dividend payout ratios. The K-means clustering model effectively categorizes these companies into six distinct clusters, each representing different levels of financial performance and credit risk. The clusters range from A+ (very low credit risk) to C (very high credit risk), providing a clear differentiation based on financial stability and operational efficiency. This systematic approach offers valuable insights for investors, managers, and government agencies, enhancing their ability to make informed decisions. Despite some limitations, such as reliance on historical data and sensitivity to initial cluster centroids, the K-means clustering model proves to be a robust starting point for assessing the creditworthiness of companies. This research contributes to the growing body of literature on machine learning applications in credit rating by demonstrating the superiority of clustering algorithms over traditional methods. It highlights how financial health and management efficiency indicators can be integrated into a data-driven framework to enhance credit risk assessment. The results suggest that the K-means clustering approach improves the accuracy of credit ratings and promotes transparency and efficiency in the financial market. Furthermore, the proposed framework can be a foundation for developing more sophisticated models, incorporating additional financial and non-financial variables. Future research could expand on this by integrating real-time data and exploring the impact of external economic factors on credit risk. By leveraging advanced machine learning techniques, this study paves the way for more reliable and comprehensive credit rating systems, ultimately supporting the stability and growth of financial markets in emerging economies like Vietnam.

   Published: 2024-09-30In press
8. Research article

   The moderating role of managerial support in the perception of IFRS and preparedness for IFRS application

   Đỗ L.

   This study investigates how manager support moderates the relationship between the perception of IFRS and preparedness for IFRS application. A survey of 238 large companies in Southern Vietnam was conducted from November 2021 to March 2022, and partial least squares structural equation modeling (PLS-SEM) was used to analyze the data. The findings of this study indicate that perceptions of benefits and managerial support positively influence preparedness for IFRS application. Conversely, perceptions of challenges and disadvantages are negatively associated with preparedness for IFRS adoption. Furthermore, manager support moderates the negative relationship between perceived challenges and preparedness for IFRS application. However, the study does not find that managerial support moderates the impact of perceptions of disadvantages or benefits on preparedness for IFRS application. This study contributes to applying agency theory in the context of IFRS adoption. The finding provides insights into how the perception of IFRS can affect the agency relationship between managers and shareholders and how managerial support can moderate this relationship. The research findings enhance our comprehensive understanding of how manager support moderates the relationship between IFRS perception and preparedness for IFRS application. This insight holds particular significance for large firms, as they commonly encounter challenges and constraints in this context. Managers can enhance IFRS application by implementing appropriate policies that promote a positive perception of IFRS and increase managerial support. However, a limitation of this study is that it relates to data collected primarily from large firms in Southern Vietnam. Expanding the study to include diverse regions could help explore regional variations. Future research in different countries could assess cross-cultural differences in IFRS preparedness and consider additional variables, such as firm characteristics and industry type, for a more comprehensive understanding.

   Published: 2024-09-30In press
9. Research article

   The power of sensory marketing on tourists' intention to return to spiritual tourism in the Mekong Delta

   Nguyen H.

   This study examines the impact of sensory marketing on tourists' intention to revisit spiritual tourism destinations in the Mekong Delta, Vietnam. It focuses on analyzing the influences of sensory marketing, destination identity, service quality, and tourist satisfaction towards sustainable spiritual tourism development. Qualitative research methodology suggested theoretical research model and adjusted scale as well as quantitative research methodology utilizing a high-order PLS-SEM model. Based on the convenience sampling methodology having 325 observations over the sampling, the research evaluates the multi-dimensional aspects of sensory marketing, including visual, olfactory, auditory, gustatory, and tactile factors. The study provides insights into the role of sensory marketing as the strongest impact among other impacts of destination identity, service quality, as well as satisfaction all enriching tourists' experiences at spiritual sites and its effect on their revisit intentions. These findings offer a scientific foundation to different interested objectives such as scholars, tourism companies, official managers of those spiritual destination points together with local authorities recommended innovative marketing strategies majorly based on sensory marketing for the tourism industry, particularly spiritual tourism, in the Mekong Delta in order to enriching the experience of tourists and the level of impacts of this factor towards the revisit intention of tourists. Those are also evidence of the recommendation to renew effective marketing strategies for spiritual tourism industry over the area of Mekong Delta, Vietnam.

   Published: 2024-09-30In press
10. Research article

    Factors affecting tourists' decision to choose agritourism destination in Lam Dong Province

    Nguyễn D.

    The tourism market is increasingly changing, the needs of tourists are diverse, so the goal of satisfying tourists' needs is increasing, along with taking advantage of tourism advantages and potentials, Lam Dong province has been and is developing new tourism products, agritourism (DLNN). To grasp the opportunity to develop tourism and agritourism, research and analyze more specifically the needs that tourists desire, the factors that motivate tourists, research Analyze factors affecting the decision to choose an agritourism destination in Lam Dong province using exploratory factor analysis (EFA) and linear regression, using survey data from 297 tourists at agricultural tourism sites such as Da Lat, Duc Trong, Lam Ha, Bao Loc, Don Duong, Lac Duong of Lam Dong province, these are areas with advantages in agriculture, especially high-tech agriculture and also are areas with potential for agritourism development. Research results show that infrastructure factors have the most impact on tourists' decisions to choose a foreign tourism destination, followed by tourism advertising and promotion factors, tourism motivation, and finally tourism factors. Factors related to the professionalism of the household head/staff at the tourist destination, the research results will be the basis for proposing recommendations to attract tourists at the tourist destination, contributing to the development of the tourism industry in Lam Dong province.

    Published: 2024-09-30In press