%0 Journal Article
%T The Effect of Banking Relationship on Firm Performance in Vietnam
%A Vu Huu Thanh
%A Nguyen Minh Ha
%J International Journal of Economics and Finance
%D 2013
%I 
%R 10.5539/ijef.v5n5p148
%X The objective of this paper is to examine how banking relationship influences on performance of public listed firms in Vietnam. With a sample of 465 companies listed in Vietnam observed in period 2007 ¨C 2010 and using regression method, the research finds that firm performance decreases as the number of bank relationships increases. If a firm establishes strongly short-term credit financing relationship with banks, the firmĄ¯s performance reduces. On the contrary, if a firm has strongly long-term credit financing relationship with banks, its performance increases. The effectiveness of using total assets is worse as a firm has strongly overall credit financing relationship with banks. Additionally, the study also indicates that asset tangibility structure has negative relationship with firmĄ¯s ROE, while assets have negative association with ROA. Turnover has positive association with firm performance. Finally, firms with higher state shares have less effective than ones with lower state shares.
%U http://www.ccsenet.org/journal/index.php/ijef/article/view/26711